Demobilization refers to the changes of a nation's armed from status from 'combat ready' to 'standing down' status. Meaning that that country tend to avoid any involvement in another war.
During the world war I , a lot of people were drafted outside the country. This created a situation where there is lesser amount of consumers in the market and the businesses in the country unable to get the labor force that they need to continue the production.
So many of them start to went bankrupt because of this and causes even more unemployment. The government see this as an economic threat that could destroy the country's well being, so they decided to demobilize the army and focus on revitalizing the economy.
