War economy

A war economy or wartime economy is how a country prepares for war. It means changing how the country uses its resources to support the war.

During wars, countries often plan more for their economies. This can mean rationing goods and sometimes asking people to help with civil defense through conscription. In big wars called total war, important buildings might become targets for combatants.

Some think that spending on the military can help keep the economy steady and prevent recessions, an idea called military Keynesianism. Others believe that too much military spending can waste resources and slow progress. Sometimes, countries start wars to improve poor economic conditions by creating jobs in the military and changing how people live to save resources.

United States

The United States has a long history of getting ready 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 made groups like the War Industries Board to help create military supplies. They started daylight saving time to save energy and asked people to grow more food. Special messages helped people support these changes.

In World War II, the U.S. government took 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 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 helping the war effort.

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

Germany

Germany had big changes in its economy during the two World Wars.

In World War I, farms had trouble because many workers went to fight. This caused food shortages.

In World War II, the Nazis changed the economy to support their military. They built factories and made people join the army. This created jobs but also made the country's debt grow large. Germany also took resources from other countries to support its war efforts.

Other examples

Armenia is 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, a large part of all the money the country spent went to its military. Armenia also asked people to help, including volunteers, doctors, and soldiers.