(i) After the war, Britain found it difficult to recapture its earlier position of dominance in the colonial market.
(ii) To finance war expenditures, Britain had borrowed from the U.S. At the end of the war Britain was burdened with huge external debts.
(iii) The war had led to a huge increase in demand, production and employment.
(iv) The government reduced bloated war expenditures to bring them into line with peace time revenues.
(v) These developments led to huge job losses. In 1921, one in every five British worker was out of work.
