– What is war economy?
In: Economics
Simply put, the state of an economy when a country is at war.
There are typically significant changes to how an economy functions at war vs at peace. Industries are retasked to produce materials needed for the military and a significant amount of goods are earmarked by the government for the war effort and never made available to the normal marketplace. The government will often take a far more active role in controlling both production and distribution in furtherance of the above goals.
Case in point, if you look at the history of the US during WWII, you’ll see that many factories retooled to produce weapons of war, rationing of many goods was common so surplus could be diverted to the troops, women worked in factories instead of the home because the men were overseas, etc.
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