Abstract

The Second World War, from 1939 to 1945, involved Britain and the British Empire and Commonwealth, France, America, Russia and China (the Allied powers) fighting Germany, Italy and Japan (the Axis powers). This might, in Winston Churchill’s memorable phrase, legitimately be referred to as the British people’s ‘finest hour’, but victory in the war could not disguise a fundamental problem in Britain. The depression of the inter-war years meant that, in 1939, Britain entered the war with limited resources; by the end of the war, the country was virtually bankrupt. Financial and also political leadership of the world now moved decisively to the United States.

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