By Karl Menger
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Extra info for Calculus: A Modern Approach
France and Italy also escaped serious food crises. Italians may have been better fed during than before the war. Food production declined when Northern France was invaded and men and horses left for the front, but increasing amounts of food were imported, especially from North America (Hardach 1977, 131–3; Zamagni 1993, 218). The food crisis was more serious in Germany and Austria-Hungary (Lee 1975). Since the Central Powers were prevented from importing army horses from other continents, their farms had to be ruthlessly stripped of horses.
Many industries that expanded during the war struggled after the revival of international competition in the 1920s. The aggregate impact of the war outside Europe was modest. Maddison estimates that whereas Western Europe’s real GDP fell by 11 per cent The First World War 25 between 1913 and 1919, Latin America’s real GDP rose by 4 per cent and Asia’s real GDP rose by 13 per cent (Maddison 1995, 66). Asia and Latin America adjusted reasonably well to the disruption of international transactions, which suggests that they were not as dependent on Europe as had been imagined in 1913.
Some were forced to consume capital, for example, by selling their homes (Lawrence 1997). By contrast, the owners of appreciating assets, such as stocks of food or engineering plants, were able to increase their real incomes and wealth. The extent to which the war restricted the capabilities of the citizens of Paris, London and Berlin is discussed in a recent collaborative volume (Winter and Robert 1997). A capability is the freedom to achieve a certain functioning, such as being well nourished, working in an interesting job, being ﬁnancially secure, or going on regular holidays (Stewart 1996, 52–6).
Calculus: A Modern Approach by Karl Menger