Wartime Economics in the Pandemic
Wartime Economics in the Pandemic Introduction: What is a War Economy? The term War Economy refers to the reorganisation of a country’s production and distribution capacities in times of conflict [1] . In essence, while a war economy tries to produce goods for supporting the war effort, it also tries to sustain and strengthen the national economy as a whole. To this end, governments utilise their revenues and re-allocate resources towards the requisite sectors. For example, in World War II, the US government reallocated resources towards the production of defence goods, while also taking measures to ensure workers’ welfare, higher taxation of corporate bodies etc, all of which directly or indirectly supported its transition to the war economy. Of course, WWII-era USA may not be the perfect example of a war economy, given that normal life went on for most of its citizens, and that the actual warzones were separated from the mainland by the entire Atlantic and Pacific Ocean...