War Economy: Strategies of Resource Mobilization, Navigating Conflict's Fiscal Frontlines

By Fouad Sabry

What is War Economy

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

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: War Economy

Chapter 2: Total War

Chapter 3: Rationing

Chapter 4: Mobilization

Chapter 5: Home Front

Chapter 6: Military Production during World War II

Chapter 7: War Effort

Chapter 8: War Production Board

Chapter 9: Vietnamese Famine of 1945

Chapter 10: Economy of Nazi Germany

(II) Answering the public top questions about war economy.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of War Economy.

• Language: English
• Publisher: One Billion Knowledgeable
• Release date: Jun 3, 2024

Book preview

Chapter 1: War economy

A modern state's collection of contingencies to mobilize its economy for war output is known as a war economy or a wartime economy. A war economy is defined as a system of producing, mobilizing, and allocating resources to perpetuate the violence by Philippe Le Billon. The implementation of resource allocation programs and an increase in Taylor rates are some of the actions performed. The methods used to restructure the economy vary from nation to nation.

Rationing and conscription for civil defenses are two ways that many states increase the level of planning in their economy during times of war. Examples of this include the Women's Land Army and the Bevin Boys in the United Kingdom during World War II. Certain structures and sites are frequently viewed by combatants as important objectives during total war conditions. Total war is exemplified by actions like the Union blockade, Union General William Tecumseh Sherman's March to the Sea during the American Civil War, and the deliberate bombardment of adversary cities and industrial during World War II.

Regarding the side of aggregate demand, the idea of a war economy has been associated with the idea of military Keynesianism, in which the government's military spending is utilized to combat recessions and/or stabilize business cycles and fluctuations. On the supply side, it has been noted that conflicts can have the effect of speeding up technical advancement to the point where an economy is much strengthened after the war, especially if it has avoided the destruction caused by the war. For instance, the United States experienced this during World War I and World War II. However, some economists (like Seymour Melman) contend that the majority of military spending is inefficient and could ultimately impede technological advancement.

By increasing services and employment in the military while at the same time depopulating portions of the population to free up resources and restore the economic and social order, war is frequently employed as a last resort to stop deteriorating economic conditions or currency crises. Another way to look at a transitory war economy is as a way to prevent the necessity for a more extensive militarization. Franklin D. Roosevelt, the president of the United States during the time of World War II, said that if the Axis powers triumphed, we would have to transform ourselves permanently into a militaristic power on the basis of war economics.

The history of the American economy during times of war is extremely complicated. The World Wars, the Korean War, and the Vietnam War were America's primary conflicts during many major occurrences in the 20th century.

As the country prepared for World War I, it increased its governmental authority by setting up organizations like the War Industries Board (WIB) to aid in the development of weapons.

Similar steps were taken by the American government to exert more economic control during the Second World War. The Two-Ocean Navy Act, passed in July 1940, served as the catalyst for the start of the transition to a wartime economy as a result of the Fall of France and the moving of the front line into the English Channel with the fate of the impending Battle of Britain uncertain. When Pearl Harbor was attacked later, the procedures were expanded and prolonged. In order to aid in mobilization, the Washington believed that a larger bureaucracy was necessary.

Many types of vehicles, including ships (such as Liberty Ships), planes (such as the North American P-51 Mustang), jeeps (such as the Willys MB), and tanks, were mass built in the United States (i.e. M4 Sherman).

By the end of 1943, two-thirds of the American economy had been incorporated into the war effort. It might be argued that the economic policies implemented before and during the Second World War assisted in the triumph of the Allies due to this extensive collaboration between public and private organizations.

Since the 1960s, the United States has engaged in a number of military operations throughout the Middle East and Latin America.

Being perpetually at war ever since the September 11 attacks, Their annual military budget is greater than India's, China, Russia, United Kingdom, Germany, Saudi Arabia, and France’s military budgets combined.

Following both World Wars, Germany's economy was completely destroyed. Even while this was not the product of poor economic planning, it is crucial to comprehend how Germany went about restoration. The demands of the war effort during World War I severely impacted the German agriculture industry. There was a shortage of food since many of the employees were conscripted and a large portion of the food was designated for the army.

Prior to the start of the Second World War, the Nazis implemented new measures that not only reduced unemployment but also effectively built a war machine in defiance of the Treaty of Versailles. A draft was put in place by the Third Reich, and factories were created to feed its rapidly growing military. Many Germans who had been struggling due to the economic collapse after World War I were given jobs as a result of these two acts. Germany