At one end there were those who profited from the war and at the other end were those who suffered under the effects of inflation. The opportunities to make enormous amounts of money in war manufacture were plentiful. War profiteers were a public scandal. Fictional new rich, like the manufacturer of shoddy boots in Jules Romains's Verdun had numerous real-life counterparts. However, government rarely intervened in major firms, as happened when the German military took over the Daimler motor car works for padding costs on war-production contracts. Governments tended to favor large, centralized industries over smaller ones. The war was a stimulus towards grouping companies into larger firms. When resources became scarce, nonessential firms, which tended to be small, were simply closed down. Inflation was the greatest single economic factor as war budges rose to astronomical figures and massive demand forced shor! tages of many consumer goods. Virtually ever able-bodied person was employed to keep up with the demand. This combination of high demand, scarcity, and full employment sent prices soaring, even in the best managed countries. In Britain, a pound sterling brought in 1919
At one end there were those who profited from the war and at the other end were those who suffered under the effects of inflation. The opportunities to make enormous amounts of money in war manufacture were plentiful. War profiteers were a public scandal. Fictional new rich, like the manufacturer of shoddy boots in Jules Romains's Verdun had numerous real-life counterparts. However, government rarely intervened in major firms, as happened when the German military took over the Daimler motor car works for padding costs on war-production contracts. Governments tended to favor large, centralized industries over smaller ones. The war was a stimulus towards grouping companies into larger firms. When resources became scarce, nonessential firms, which tended to be small, were simply closed down. Inflation was the greatest single economic factor as war budges rose to astronomical figures and massive demand forced shor! tages of many consumer goods. Virtually ever able-bodied person was employed to keep up with the demand. This combination of high demand, scarcity, and full employment sent prices soaring, even in the best managed countries. In Britain, a pound sterling brought in 1919