Demobilization had a negative impact on the economies of European countries . After World War I, Europe's industrial and agricultural potential fell by more than 30%, many factories were closed, unemployment increased and the European currency suffered from devaluation.
On the other hand, this process strengthened the US economy, because as the European countries needed parrros that lent them money and offered products to be bought. The US was the largest candidate for this partnership, which boosted its economy, made it export much more, and increased the country's wealth