– What is war economy?
In: Economics
War economy refers to a country re-tooling its economic output for war. The government steps in and takes a tighter control over industry and economic output.
Industries stop producing consumer and export goods and instead produce war material tanks, planes, guns, ammo.
WW2 is the classic example of this as it was a Total War meaning that the resources of the entire country became dedicated to the war effort.
The key difference is that it wasn’t just dedicated suppliers like Raytheon and Lockheed making weapons during WW2. Companies like Ford, GM, and Chrysler stopped making cars and started making bombers and tanks.
Latest Answers