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inysia [295]
3 years ago
14

How do YOU think these drawbacks affected modern-day europe?

Geography
2 answers:
vlabodo [156]3 years ago
4 0
Hdhdhdjdjnfbf f. g g g g h h
olasank [31]3 years ago
3 0

Answer:

Economically, Europe emerged from World War I much weakened, partly by the purchases that had had to be made in the United States. Even in 1914 the United States had been the world’s leading economic power. By 1918 profits had enabled it to invest more than $9 billion abroad, compared with $2.5 billion before the war. The Allies, meanwhile, had used up much of the capital they had invested in the United States and had accumulated large public debts, many of them to the U.S. Treasury.

American financial dominance and European debt overshadowed economic relations in the first decade after the war. The debts included those owed by the Allies to each other, especially to Britain, as well as those owed, especially by Britain, to the United States. A third baneful factor was reparations, the financial penalties imposed on Germany by the Treaty of Versailles.

Keynes described reparations as morally detestable, politically foolish, and economically nonsensical. Winston Churchill called them “a sad story of complicated idiocy.” Essentially, they meant demanding from Germany either goods—which would have dislocated industry in the recipient countries—or money. This the Germans could obtain only by contracting vast and almost unrepayable loans in the United States—to whom the European recipients of reparations promptly returned much of the cash in an effort to settle their own transatlantic debts.American financial dominance and European debt overshadowed economic relations in the first decade after the war. The debts included those owed by the Allies to each other, especially to Britain, as well as those owed, especially by Britain, to the United States. A third baneful factor was reparations, the financial penalties imposed on Germany by the Treaty of Versailles.

Keynes described reparations as morally detestable, politically foolish, and economically nonsensical. Winston Churchill called them “a sad story of complicated idiocy.” Essentially, they meant demanding from Germany either goods—which would have dislocated industry in the recipient countries—or money. This the Germans could obtain only by contracting vast and almost unrepayable loans in the United States—to whom the European recipients of reparations promptly returned much of the cash in an effort to settle their own transatlantic debts.

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