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Legacy
The first tentative efforts to comprehend the meaning and consequences of modern warfare began during the initial phases of the war, and this process continued throughout and after the end of hostilities.

Memorials
Memorials were erected in thousands of villages and towns. Close to battlefields, the improvised burial grounds were gradually moved to formal graveyards under the care of organisations such as the Commonwealth War Graves Commission, the American Battle Monuments Commission, the German War Graves Commission and Le Souvenir français. Many of these graveyards also have central monuments to the missing or unidentified dead, such as the Menin Gate memorial and the Thiepval Memorial to the Missing of the Somme.

On 3 May 1915, during the Second Battle of Ypres, Lieutenant Alexis Helmer was killed. At his graveside, his friend John McCrae, M.D., of Guelph, Ontario, Canada wrote the memorable poem In Flanders Fields as a salute to those who perished in the Great War. Published in Punch on 8 December 1915, it is still recited today, especially on Remembrance Day and Memorial Day.

Liberty Memorial in Kansas City, Missouri is a United States memorial dedicated to all Americans who served in World War I. The site for the Liberty Memorial was dedicated on November 1, 1921. On this day, the supreme Allied commanders spoke to a crowd of more than 100,000 people. It was the only time in history these leaders were together in one place. In attendance were Lieutenant General Baron Jacques of Belgium; General Armando Diaz of Italy; Marshal Ferdinand Foch of France; General Pershing of the United States; and Admiral D. R. Beatty of Great Britain. After three years of construction, the Liberty Memorial was completed and President Calvin Coolidge delivered the dedication speech to a crowd of 150,000 people in 1926.

Liberty Memorial is also home to The National World War I Museum, the only museum dedicated solely to World War I in the United States.

Cultural memory
The First World War had a lasting impact on social memory. It was seen by many in Britain as signalling the end of Victorian England, and across Europe many regarded it as a watershed moment. Historian Samuel Hynes explained:

"A generation of innocent young men, their heads full of high abstractions like Honour, Glory and England, went off to war to make the world safe for democracy. They were slaughtered in stupid battles planned by stupid generals. Those who survived were shocked, disillusioned and embittered by their war experiences, and saw that their real enemies were not the Germans, but the old men at home who had lied to them. They rejected the values of the society that had sent them to war, and in doing so separated their own generation from the past and from their cultural inheritance."

This has become the most common perception of the First World War, perpetuated by the art, cinema, poems and stories published subsequently. Films such as All Quiet on the Western Front, Paths of Glory and For King and Country have perpetuated the idea; while war-time films including Camrades, Flanders Poppies and Shoulder Arms indicate that the most contemporary views of the war were overall far more positive. Likewise, the art of Paul Nash, John Nash, Christopher Nevison and Henry Tonks in Britain painted a negative view of the conflict in keeping with the growing perception, while popular war-time artists such as Muirhead Bone painted more serene and pleasant interpretations subsequently rejected as inaccurate. Several historians have since countered these interpretations:

"These beliefs did not become widely shared because they offered the only accurate interpretation of wartime events. In every respect, the war was much more complicated than they suggest. In recent years, historians have argued persuasively against almost every popular cliché of the First World War. It has been pointed out that, although the losses were devastating, their greatest impact was socially and geographically limited. The many emotions other than horror experienced by soldiers in and out of the front line, including comradeship, boredom and even enjoyment, have been recognised. The war is not now seen as a 'fight about nothing', but as a war of ideals, a struggle between aggressive militarism and more or less liberal democracy. It has been acknowledged that British generals were often capable men facing difficult challenges, and that it was under their command that the British army played a major part in the defeat of the Germans in 1918: a great forgotten victory."

Though these historians have discounted as "myths" these perceptions of the war, they are nevertheless prevalent across much of society.0}} They have dynamically changed according to contemporary influences, reflecting in the 1950s perceptions of the war as 'aimless' following the contrasting Second World War, and emphasising conflict within the ranks during times of class conflict in the 1960s. The majority of additions to the contrary are often rejected.

Social trauma
The social trauma caused by unprecedented rates of casualties manifested itself in different ways, which have been the subject of subsequent historical debate. Some people were revolted by nationalism and its results, and so they began to work towards a more internationalist world, supporting organisations such as the League of Nations. Pacifism became increasingly popular. Others had the opposite reaction, feeling that only strength and military could be relied upon in a chaotic and inhumane world. Anti-modernist views were an outgrowth of the many changes taking place in society.

The experiences of the war led to a collective trauma shared by many from all participating countries. The optimism of la belle époque was destroyed and those who fought in the war were referred to as the Lost Generation. For years afterwards, people mourned the dead, the missing, and the many disabled. Many soldiers returned with severe trauma, suffering from shell shock (also called neurasthenia, now called posttraumatic stress disorder). Many more returned home with few after-effects; however, their silence about the war contributed to the conflict's growing mythological status. In the United Kingdom, mass-mobilisation, large casualty rates and the collapse of the Edwardian era made a strong impression on society. Though many participants did not share in the experiences of combat or spend any significant time at the front, or had positive memories of their service, the images of suffering and trauma became the widely shared perception. Such historians as Dan Todman, Paul Fussell and Samuel Heyns have all published works since the 1990s arguing that these common perceptions of the war are factually incorrect.

Discontent in Germany
The rise of Nazism and fascism included a revival of the nationalist spirit and a rejection of many post-war changes. Similarly, the popularity of the Stab-in-the-back legend (German: Dolchstoßlegende) was a testament to the psychological state of defeated Germany and was a rejection of responsibility for the conflict. This conspiracy theory of betrayal became common, and the German populace came to see themselves as victims. The Dolchstoßlegende's popular acceptance in Germany played a significant role in the rise of Nazism. A sense of disillusionment and cynicism became pronounced, with nihilism growing. Many believed the war heralded the end of the world as they had known it because of the high fatalities among a generation of men, the dissolution of governments and empires, and the collapse of capitalism and imperialism.

Communist and socialist movements around the world drew strength from this theory and enjoyed a new level of popularity. These feelings were most pronounced in areas directly or harshly affected by the war. Out of German discontent with the still controversial Treaty of Versailles, Adolf Hitler was able to gain popularity and power. World War II was in part a continuation of the power struggle never fully resolved by the First World War; in fact, it was common for Germans in the 1930s and 1940s to justify acts of international aggression because of perceived injustices imposed by the victors of the First World War.

The establishment of the modern state of Israel and the roots of the continuing Israeli-Palestinian Conflict are partially found in the unstable power dynamics of the Middle East which resulted from World War I. Prior to the end of the war, the Ottoman Empire had maintained a modest level of peace and stability throughout the Middle East. With the fall of Ottoman government, power vacuums developed and conflicting claims to land and nationhood began to emerge. The political boundaries drawn by the victors of the First World War were quickly imposed, sometimes after only cursory consultation with the local population. In many cases, these continue to be problematic in the 21st-century struggles for national identity. While the dissolution of the Ottoman Empire at the end of World War I was pivotal in contributing to the modern political situation of the Middle East, including the Arab-Israeli conflict, the end of Ottoman rule also spawned lesser known disputes over water and other natural resources.

Views in the United States
U.S. intervention in the war, as well as the Wilson administration, became deeply unpopular. This was reflected in the U.S. Senate's rejection of the Versailles treaty and membership in the League of Nations. In the interwar era a consensus arose that U.S. intervention was a mistake, and the Congress passed laws in an attempt to preserve U.S. neutrality in any future conflict. Polls taken in 1937 and the opening months of World War II established that nearly 60% regarded the intervention as a mistake, with only 28% opposing that view. But, in the period between the fall of France and the attack on Pearl Harbor, public opinion changed dramatically and, for the first time, a narrow plurality rejected the idea that the war was a mistake.

New national identities
Poland reemerged as an independent country, after more than a century. As a "minor Entente nation" and the country with the largest casualties per head  the Kingdom of Serbia and its dynasty became the backbone of the new multinational state, the Kingdom of Serbs, Croats and Slovenes (later renamed Yugoslavia). Czechoslovakia, combining the Kingdom of Bohemia with parts of the Kingdom of Hungary, became a new nation. Russia became the Soviet Union and lost Finland, Estonia, Lithuania and Latvia, which became independent countries. The Ottoman Empire was soon replaced by Turkey and several other countries in the Middle East.

In the British Empire, the war unleashed new forms of nationalism. In Australia and New Zealand the Battle of Gallipoli became known as those nations' "Baptism of Fire". It was the first major war in which the newly established countries fought and it was one of the first times that Australian troops fought as Australians, not just subjects of the British Crown. Anzac Day, commemorating the Australian and New Zealand Army Corps, celebrates this defining moment.

After the Battle of Vimy Ridge, where the Canadian divisions fought together for the first time as a single corps, Canadians began to refer to theirs as a nation "forged from fire". Having succeeded on the same battleground where the "mother countries" had previously faltered, they were for the first time respected internationally for their own accomplishments. Canada entered the war as a Dominion of the British Empire and remained so afterwards, although she emerged with a greater measure of independence. While the other Dominions were represented by Britain, Canada was an independent negotiator and signatory of the Versailles Treaty.

Economic effects
One of the most dramatic effects of the war was the expansion of governmental powers and responsibilities in Britain, France, the United States, and the Dominions of the British Empire. In order to harness all the power of their societies, new government ministries and powers were created. New taxes were levied and laws enacted, all designed to bolster the war effort; many of which have lasted to this day. Similarly, the war strained the abilities of the formerly large and bureaucratised governments such as in Austria–Hungary and Germany; however, any analysis of the long-term effects were clouded by the defeat of these governments. Gross domestic product (GDP) increased for three Allies (Britain, Italy, and U.S.), but decreased in France and Russia, in neutral Netherlands, and in the main three Central Powers. The shrinkage in GDP in Austria, Russia, France, and the Ottoman Empire reached 30 to 40%. In Austria, for example, most of the pigs were slaughtered and, at war's end, there was no meat.



All nations had increases in the government's share of GDP, surpassing fifty percent in both Germany and France and nearly reaching fifty percent in Britain. To pay for purchases in the United States, Britain cashed in its extensive investments in American railroads and then began borrowing heavily on Wall Street. President Wilson was on the verge of cutting off the loans in late 1916, but allowed a great increase in U.S. government lending to the Allies. After 1919, the U.S. demanded repayment of these loans, which, in part, were funded by German reparations, which, in turn, were supported by American loans to Germany. This circular system collapsed in 1931 and the loans were never repaid. In 1934, Britain owed the US $4.4 billion of World War I debt.

Macro- and micro-economic consequences devolved from the war. Families were altered by the departure of many men. With the death or absence of the primary wage earner, women were forced into the workforce in unprecedented numbers. At the same time, industry needed to replace the lost labourers sent to war. This aided the struggle for voting rights for women.

In Britain, rationing was finally imposed in early 1918, limited to meat, sugar, and fats (butter and oleo), but not bread. The new system worked smoothly. From 1914 to 1918 trade union membership doubled, from a little over four million to a little over eight million. Work stoppages and strikes became frequent in 1917–1918 as the unions expressed grievances regarding prices, alcohol control, pay disputes, fatigue from overtime and working on Sundays and inadequate housing.

Britain turned to her colonies for help in obtaining essential war materials whose supply had become difficult from traditional sources. Geologists such as Albert Ernest Kitson were called upon to find new resources of precious minerals in the African colonies. Kitson discovered important new deposits of manganese, used in munitions production, in the Gold Coast.

Article 231 of the Treaty of Versailles (the so-called "war guilt" clause) declared Germany and its allies responsible for all "loss and damage" suffered by the Allies during the war and provided the basis for reparations. The total reparations demanded was 132 billion gold marks which was far more than the total German gold or foreign exchange. The economic problems that the payments brought, and German resentment at their imposition, are usually cited as one of the more significant factors that led to the end of the Weimar Republic and the beginning of the dictatorship of Adolf Hitler. After Germany’s defeat in World War II, payment of the reparations was not resumed. There was, however, outstanding German debt that the Weimar Republic had used to pay the reparations. Germany finished paying off the reparations in October 2010.