According to Philippe Le Billon, war economy is a system of producing, mobilizing and allocating resources to sustain the violence.” It deals with the production of things at times of conflict. It is a process in which a government takes primitive measures in order to benefit the country that is in both military and domestic purposes.
What war economy is really is? It relates to the economy of a country under progress. For example, the economy of a country is not making progress and have to undergo many crucial stages. People have to sell goods and have to provide the best services when there is a war economy. Government comes in a great pressure when there is a war economy as their interests goes towards national security and military piece of training, despite this, they have to maintain the production of goods and services so that other people also sustain their lives. It can be seen through that tax dollars are being used as for defenses. That is when a government is borrowing money it goes for military training. While those countries that have no war economy, they don’t undergo such conflicts as they work more for infrastructures.
At the time of World War II, the United States is a powerful economic state. They helped the allies during the Second World War so they would receive the equipment they needed in the war. Now, this arises a question that why the United States is behind every war? What benefit they are going to have in the countries that are at the war? We all know that the economy of US is well developed and is the world’s best economy. Their economy dollar ($) has gained much fame and being used all around the world. Many countries use it as their official currency. Their economy is nourished because they have a great number of natural resources, significant financial markets, and influential foreign investments.
After World War I, America emerges as they say “war to end all wars.” World War I is an end to all of their destruction. After this, their economy emerges more rapidly than any other thing. The US believes in war because they think they can. They may have no obvious reason to do a war, but what they believe that they have powers that’s why they can have war with other countries as well. This war can be seen in terms of the economy that is they can suppress those countries whose economy is lower. They can take over easily to all those countries. Secondly, because the economy of the US depends mainly at the war equipment and genocides. This leads them to the welfare of arms manufacture.
At the end, we can say that a country that has undergone a war economy can cause many negative effects to that country. As during these times, the taxes have been increased that is public debts increased in amount. Secondly, GDP percent also decreased at times of conflicts. Thirdly, there is an increase in inflammation during the time of conflicts. Fourthly, it also leads to income distribution problems. Lastly, it also causes the average stock market valuations. In conclusion, we can say that war can make our economy a mere thing and backs us up 50 years earlier. This means that when a country is in conflict a country whose economy is prestigious is going to have benefited from it. That’s why where there is a war economy the US is behind this because their economy is developed as compared to other Western countries.
Author: Naima Cheema