Economic Impact Essay

The economic impact of WW1 was the most significant impact upon Italy
(1915-1918). To what extent do you agree? (22)!

!
!
!

The economic impacts that were brought about by WW1 were extremely significant, however there are other areas to consider that also had a great affect on Italy and its people. Italy had signed the treaty of London in 1915, this was a secret agreement between Britain, France and Russia that guaranteed the Italians generous territorial gains provided they joined the side of the allies in WW1. WW1 however did not just allow Italy to gain only land, it also gained many economic, social and military problems with it. !

!

Firstly we should consider the economic impact on Italy which had good points and bad points. Italy was taking massive strides in its production of wartime armaments and by the end of the war had more artillery than the British army with over 6,500 aircraft. Companies like Fiat received cheap loans to keep factories running and the company grew fivefold because of the demand for army vehicles, however when the war ended suddenly in 1919 the Italian industry had become heavily dependant on the war and industry was now facing problems due to the sudden lack of demand. The government was trying to reach maximum production for the war had run up massive budget deficits and the government had also borrowed from Britain and France. At the end of the war this left the Italian government with a dept of 85 billion lira. With this dept and to finance the war production the government had started printing more money which in turn led to inflation and prices were four times that of before the war. The economic impact of the war defiantly impacted
Italy seriously as with a failing industry this has a knock on impact on the social and political problems.!

!

Due to WW1 divisions were showing in Italian politics with Salandra wanting to go to war for territorial gains and Giolitti not wishing to go to war like most Italians. During the War, wartime governments were set up which were weak and didn't rally national enthusiasm.
People were now looking to more extreme parties with extreme views for change in the country and the Liberals were finding it impossible to satisfy everyones wishes. Italians were beginning to dislike the liberal system as when they had entered the war it was thought Italy would come out if it a great power in Europe with more territory, however this was certainly not the case. Italy had come out of the war with a serious inflation crisis and high unemployment rates and also the south of Italy was still poverty stricken. The promises of the Treaty of London that the liberals and entered the war for had not been granted in their fullest terms and the country was left with a 85 billion lira dept.!

!

The social implications Italy had after WW1 should also be considered as they had a major impact on Italy and its people. Due to the war, industrial workers were impacted first as industry was put under a military style discipline where workers could no longer leave their jobs or go on strike. What built up an even major resentment though was that inflation was
25 percent ahead of wage increases and there was still a shortage of food, a consequence of this anger was food riots in Turin in 1917 which had to be put down by the army. In the countryside peasant dept was paid off and traditional rent payments became less of a strain on the peasant workforce and the peasants enjoyed new prosperity at

Show More