Germany's Economic Consequences

The First World War (1914-1918) - a consequence of the struggle for the redistribution of industrial powers of the world of spheres of influence. It had involved 34 out of the 56 sovereign states of the then existing. In military actions participated 74 million people, of whom 10 million have died, have been traumatized 20 million, and died of starvation and epidemics around 10 million. According to the economists' estimation military expenditures of the states which participated in this war, were increased in 20 times ( around 208 billion dollars, in the prices of corresponding years) and exceeded 12 times the total gold reserves of European countries that occurred before the war. To cover the costs of warfare states were used three main

Expenses amounted 150 billion marks, and accumulated in the the years of war resources - only 35 billion marks. Public debt increased from 5 to 160 billion marks. Were killed and injured 7.5 million of people. In 1918 compared with 1913 the volume of industrial production decreased by 43%, agriculture - by 35-50%, decreased by half the national wealth. In 1916 famine began. Blocked by the Entente countries Germany exported only 1/3 of necessary foodstuffs. Catastrophically grew up public debt. Reduced the real wage, the working day made 12-14 hours. The government took control of production and distribution. In 1915, the government promoted the formation of syndicates in coal, cement, aluminum, shoe industries. In 1916 the so-called Hindenburg Program (Commander of the German Army) has legalized state intervention in the economy. It has been introduced universal labor conscription, rationing system, state crediting industry. The economic situation in the state worsened the conditions of the Versailles

Quantitatively decreased international economic relations were destroyed mechanisms and instruments of state interaction began processes autarkic in national economies. On the territory of the Russian Empire began the process of establishing the socialist economic system that does not fit into the world economic processes. Interwar period was characterized by the international economic relations: the formation of quasi-monetary system; reduction in the rate of growth of international trade, the change of leaders, geographical and structural