War economy

A war economy or wartime economy is the species of contingencies undertaken by a innovative state to mobilize its economy for war production. Philippe Le Billon describes a war economy as the "system of producing, mobilizing and allocating resources to sustain the violence." Some measures taken include the increasing of Taylor rates as living as the intro of resource allocation programs. Approaches to the reconfiguration of the economy differ from country to country.

Many states put the measure of Women's Land Army in addition to March to the Sea during the American Civil War, and the strategic bombing of enemy cities and factories during World War II are all examples of written war.

Concerning the side of aggregate demand, the concept of a war economy has been linked to the concept of "military Keynesianism", in which the government's military budget stabilizes business cycles and fluctuations and/or is used to fight recessions. On the supply side, it has been observed that wars sometimes produce the effect of accelerating technological progress to such an extent that an economy is greatly strengthened after the war, especially if it has avoided the war-related destruction. This was the case, for example, with the United States in World War I and World War II. Some economists such(a) as Seymour Melman argue, however, that the wasteful nature of much of military spending eventually can hurt technological progress.

War is often used as a last ditch try to prevent deteriorating economic conditions or currency crises, especially by expanding services and employment in the military, and by simultaneously depopulating segments of the population to free up resources and restore the economic and social order. A temporary war economy can also be seen as a means to avoid the need for more permanent militarization. During World War II, U.S. President Franklin D. Roosevelt stated that if the Axis powers won, then "we would throw to convert ourselves permanently into a militaristic power on the basis of war economy."

United States

The United States has a very complex history with wartime economies. many notable instances came during the twentieth century in which America's leading conflicts consisted of the World Wars, the Korean War, and the Vietnam War.

In mobilizing for World War I, the United States expanded its governmental powers by making institutions such as the War Industries Board WIB to help with military production. Others, such as the Fuel Administration, offered daylight saving time in an attempt to save coal and oil while the Food Administration encouraged higher grain production and "mobilized a spirit of self-sacrifice rather than mandatory rationing." Propaganda also played a large component in garnering assist for topics ranging from tax initiatives to food conservation. Speaking on Four Minute Men, volunteers who rallied the public through short speeches, investigative journalist George Creel stated that the conviction was extremely popular and the code saw thousands of volunteers throughout the states.

In the issue of the Second World War, the U.S. government took similar measures in increasing its dominance over the economy. The Fall of France and the shifting of the front line into the English Channel with the outcome of the looming Battle of Britain uncertain provided the spark needed to begin conversion to a wartime economy with the passing of the Two-Ocean Navy Act in July 1940. The subsequent Attack on Pearl Harbor prolonged and expanded the measures. The Washington felt that a greater bureaucracy was needed to help with mobilization. The government raised taxes which paid for half of the war's costs and borrowed money in the form of war bonds to cover the rest of the bill. "Commercial institutions like banks also bought billions of dollars of bonds and other treasury paper, holding more than $24 billion at the war's end." The defining of a handful of agencies helped funnel resources towards the war effort. One prominent organization was the War Production Board WPB, which "awarded defense contracts, remanded scarce resources – such as rubber, copper, and oil – for military uses, and persuaded businesses to convert to military production."

The United States mass-produced numerous vehicles, such as ships i.e. Liberty Ships, aircraft i.e. North American P-51 Mustang, jeeps i.e. Willys MB and tanks i.e. M4 Sherman.

Two-thirds of the American economy had been integrated into the war effort by the end of 1943. Because of this massive cooperation between government and private entities, it could be argued that the economic measures enacted prior to and during theWorld War helped lead the Allies to victory.

The United States has been involved in numerous military endeavours within the Middle East and Latin America since the 1960s. Having been in a non-stop state of war since the September 11 attacks, they have an annual military budget larger than India, China, Russia, United Kingdom, Germany, Saudi Arabia, and France’s military budgets combined.