How did world war 1 affect Britain economically and socially?

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How did world war 1 affect Britain economically and socially?

        The outbreak of the war in August 1914 produced immediate changes. It is often said that war is the 'locomotive of history' - that is what drives it along. Certainly the First World War helped to produce major changes in British government, society, the economy and industrial relations.

        The war produced political turmoil. In 1915 Prime Minister Asquith formed a coalition government, and the following year he was replaced as premier by Lloyd George, who gave a new impetus to the direction of the war. He believed in greater state intervention built upon the abandonment of laissez faire. The powers of the state had grown enormously. A form of 'war socialism' had been introduced. New ministries were set up, and at the end of the war, several of these (pensions, health and labour) became permanent institutions of the state. There had been an important extension of social policy during the war, the government was formulating extensive plans for the provision of new housing, better education and an extension of unemployment insurance. Nevertheless taxation and social spending did not return to their pre war levels. These policies were introduced thanks to the outbreak of the war although it can be argued that they would have probably occurred anyway.

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        The war also produced major economic changes. British industry had been to a large extent transformed by the mobilisation of millions of soldiers and by an unprecedented switch to war production. Under a positive perspective, the economy had shown a new production capacity. Although total output had decreased, due to the smaller workforce, productivity definitely increased. There had been much state-sponsored modernisation. Electric power was used more than ever before. The removal of so many skilled workers had initially threatened an economic collapse but had in fact stimulated the much needed mechanisation. The efficiency of agriculture had also increased, with ...

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