War economy

A war economy or wartime economy is the set of preparations a country makes to get ready for war. It involves changing how the country uses its resources to support the war effort. This can include raising interest rates and starting programs to manage resources.

During wars, many countries put more planning into their economies. This often means rationing goods and sometimes requiring people to help with civil defense through conscription. In big wars called total war, important buildings can become targets for combatants.

Some believe that spending on the military can help steady the economy and prevent recessions, a idea called military Keynesianism. However, others argue that too much military spending can waste resources and slow down progress. Sometimes, countries start wars to improve bad economic conditions, by creating jobs in the military and changing how people live to save resources and restore order.

United States

The United States has a long history of preparing its economy for war, especially during big conflicts like World War I, World War II, the Korean War, and the Vietnam War.

During World War I, the United States created groups like the War Industries Board to help make military supplies. They also started daylight saving time to save energy and encouraged people to grow more food. Special talks and messages helped get people to support these changes.

In World War II, the U.S. government took even more steps to prepare. After events like the Fall of France and the Attack on Pearl Harbor, they raised taxes and sold special bonds to pay for the war. They also made new groups to manage resources like rubber and oil for the military. The country made many vehicles such as ships, planes, jeeps, and tanks. By 1943, most of the U.S. economy was focused on the war effort, which helped the Allies win.

Today, the United States continues to spend a lot on its military, especially in places like the Middle East and Latin America.

Germany

Germany faced big changes in its economy during the two World Wars. During World War I, the country's farms had trouble keeping up because many workers were called to fight, and food was sent to the soldiers. This caused shortages, and even though leaders tried to help with rules on food prices, it was hard to solve.

In World War II, the Nazis changed the economy to support their growing military. They created jobs by building factories and forcing people to join the army. This helped reduce unemployment, but the country's debt grew very large. Germany also took resources and money from the countries it occupied, like France, to support its war efforts.

Other examples

Armenia is an example of a country that used war economy ideas, especially during the 2020 Second Nagorno-Karabakh War. This small country in the Caucasus faced blockades but still chose to spend more money on its military after 2018. By 2019, about 18.8% of all the money the country spent went to its military. In addition to getting more money ready, Armenia also called for people to help, including volunteers, doctors, and soldiers.