The paper "Pre-World War I Economy" is a perfect example of macro and microeconomics coursework. The world economy shifts from time to time with each period having its unique characteristics. The period before the First World War was a period when the world had begun the globalization process, and more and more industries started to spring owing to the many inventions that were being made in Europe (World Trade Report, 2007). Advances made at this point in history resulted in various historical events including colonization and the First World War.
This paper will take an in-depth analysis of the period leading to the start of the twentieth century. Several key pointers will direct this study. First is that at the start of the twentieth century, many countries including the dominant economies today were poor compared to their economic status when the century came to a close. Second is that as the nineteenth century came to an end, the cost of transport had fallen significantly, and transport speeds had increased substantially to enable the shipping of people and goods wherever possible. The third is that the reduction in transport costs and had for the first time in human history created a possibility for a global economy (Bradford, 2007).
In this kind of economy, the movement of goods and people across oceans and between continents was central to the thriving of the economy. Finally is that the economic history of the post-World War I era was concerned with the creation of economic, technological and economic logic that would see the first global economy. Patterns of migration, the division of labor, international investment and economic growth that were established decades before the First World War would not last after the war.
They would be destroyed by war, technological changes, and politics during and after the war (Bradford, 2007). Production and Technology At the start of the Twentieth Century, the world was still not industrialized as such. Many people survived from farming; most people could not read. Despite the fuss created by the various technological advancements in Europe during the industrial revolution, not many people had used the steam engine or telephone. Life expectancy at this age was still very low.
Britain at the time was one of the world’ s most advanced economies. At 1870, the country had a 76% literacy rate with 76% of the population having enrolled in primary school and 1.7% secondary school enrollment. Agricultural employment accounted for 23%. By the start of the world war in 1914, the literacy rate was at 96%; there was a 100% primary school enrollment and a 5.5% secondary school enrollment. Agricultural employment was at 12% (Martin, 2015). In the United States and the rest of Europe, farmers were the largest occupational group and over half of the population lived in rural areas.
In Canada, New Zealand, Argentina and Australia were otherwise known as “ regions of European Settlement” , agriculture was the main economic activity accounting for a huge chunk of the GDP. Farmers in these countries had also managed to accumulate a vast amount of wealth Among the major minerals that were produced at the time include coal. In Britain, 194 million tons of coal would be burnt in 1913. However, the major problem was that energy at this time was not used effectively.
Railroad in the U. S carried people close to 35 billion miles. Steel production began in the second half of the twentieth century owing to the discovery of the Thomas-Gilchirst process and the Bessemer process.
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