Why did the First World War have such a disruptive effect on the Essay

Why did the First World War have such a disruptive effect on the international trading and financial system - Essay Example Only the USA have won. From the beginning of the 20-th century the pure market (besides it was in many respects an abstract theoretical structure) began to be supplemented and partly to be replaced with the new public institutes. These institutes had various origin and nature. All of them operated, however, in one direction, reducing a degree of capitalism spontaneity with its destructive consequences in the form of periodic mass ruins. Besides these new institutes have allowed realizing the rights to the best life, have raised the workers’ share, actually creating public riches, in distribution of a product created by all society (Ashworth, 1962, p65). Then there was the First World War. It has occurred because of the impetuous aspiration of the private capital to the profit and has brought many sufferings to the nations of the world. After the First World War there were the significant changes for capitalism. The so-called system of ‘free trade’ has been reorganized in system of interstate agreements. In the frames of national economies the top was taken by healthy forces, which understood the banefulness of the impetuous competition for domestic economic structure, first of all for new, progressive industries. The archaic system of the gold standard, which leaned to the prejudices concerning value of gold, has been replaced with more modern international monetary system assumed close coordination of national banks. The impetuous competition has received a worthy counterbalance in the form of the antimonopoly law and, in some cases, elements of economy planning. The social rights of workers became better protected - the role of trade unions has amplified, in some countries the elements of social protection, the forerunner of the modern systems ‘welfare state’ began to appear (Aldcroft, 1978, p68). Then there was the most destructive economic crisis for all world history. It occurred because the out-of-date system ‘laissez