Economic state of England after the war

Even though England was economically flourishing during the war, they were not prepared for war. In the summer of 1914, England was in a major financial crisis and needed a way to pay for the war. During the war, the income tax was raised to 8%, they borrowed money from other counties, established war bonds, and was allowed to increase the availability of money by printing more of it. After the war, foreign trade was scarred . Countries cut off the supply of British goods and were forced to rely on their own resources. This caused England to go into a deep recession in 1920s. England became so in debt that people would possibly never get their money back from the war bonus they bought.After this point,England was overpowered by the United States and they became the leading global economic power. (Did)

(Google)