– What is war economy?
In: Economics
There’s no proper “strict” definition of a war economy, but it’s generally held to include at least some of the following:
1. Increased or outsized government spending on the military
2. Diversion of certain economic activities to support the military
3. Rationing or other emergency measures taken to divert resources to the military
4. Changes in law (notably, labor law) to allow flexibility in moving resources around
War economies are generally temporary and emergency-based. If a nation is always under a ‘war economy’ then it’s just ‘the economy’.
The intention is that war requires a sudden influx of resources that is, by necessity, driven by the government and not private enterprise, so laws and decisions are enacted to quickly override existing economic laws and principles. And it has to be quick, since war can’t wait for a few fiscal quarters.
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