Social and economic conditions in first …

The post-war economic recovery proved to be very difficult. Post First World War period economic conditions are as follows:

1. Britain which was the world's leading economy in the pre-war period faced a prolonged crisis. Indian and Japanese industries were developed as Britain was occupied with war.
2. After the war, it was difficult for Britain to recapture its earlier position in the Indian market. Britain was burdened with huge external debts from the US. 
3. War transformed the United States from an international debtor to an international creditor. The United States and its citizens owned overseas assets.
4. Many agricultural economies also went into crisis. After the war, foodgrain production boomed dramatically. It resulted in fall of grain prices and reduced rural income.
5. The government reduced bloated war expenditure. This led to huge job losses and unemployment.