The end of liberalism
The First World War put an end to classical liberalism, especially with the state entering the economy on a broad basis by financing the industries needed to wage war.
Unlike the United States, Britain and France maintained this type of policy after the war because of the severe post-war crisis they were experiencing. This made their economies significantly less flexible and difficult to move on to technological innovation. For this reason, at the end of the 1920s, they barely reached their pre-war levels of development.
There is no denying that increased state participation in the economy helped Britain and France bear the effects of the Great Depression of 1929-1933 more easily. And in the 1930s, the state participation was expanded – one of the main reasons for the further lag of these two countries.
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