cen.acs.org
Even though wars can be very detrimental to the economy of some countries, history has showed that wars can actually benefit the economy of a country. The enhancement of the economy through war usually has had the same pattern when it is successful. Countries that benefited from war tended to involve a mass majority of citizens within that country being employed, while having the production and revenue of the work directed toward the government. Then the income and production of the workers is then funneled back to the nation which then gives people a steady income, a secure job, and more spending power, all of these things helped these following economies massively. Although the next to countries actually fought against each other during WWII, their economic tactics towards war barely differed.
Before and during WWII Nazi Germany used war as a way to lift people out of unemployment and poverty by providing the citizens with jobs which benefited the common man while strengthening their nation immensely. According to Nazi Germany's Economic Boom in 1933 the unemployment population was at a staggering 6 million people, but by 1939 the unemployment population was at 300,000. During that time span thousands of jobs were created which provided the 1.4 million strong army with all things necessary for war. So the stronger the military became, the more jobs were demanded to support and supply the steadily growing military which then provided more people with jobs while enhancing the military's power. Although strikes were outlawed by the government, the jobs they provided for factory workers earned 10 times more than the dole payment that the government distributed towards the unemployed. This massive differential in salary would incentivize more people to work, which then helped the government in it's war expenditures while enhancing the economy.
Following the Great Depression in The United States the economy also boomed while preparing and fighting in WWII. The New Deal implemented by FDR was a large reason why the U.S's economy actually prospered during war time affairs. According to Economic Progression of the U.S during WWII the U.S government imposed a General Maximum Price Regulation, this disabled the federal government from inflating the economy over 3.5%, which was the average inflation rate from 1942 through 1946. Following the war in 1946 the inflation rates soared to 10.3 percent. Also many private sector industries were converted into war time companies which then strengthened the military, such as the "conversion" of some of the automobile industry transitioning into aircraft industries. During this time of war the government did federally tax 43 million people which was previously at 4 million people, this was a very intelligent choice by the government because it increased the tax revenue from 8.7 billion dollars to 45 billion dollars. This wasn't detrimental for the taxpayer either due to the fact that employment during the war was steadily increasing. The economy was thriving while increasing the gross national production from 88.6 billion dollars in 1939 to a 135 billion dollars in 1944. The war unified the nation, while providing more jobs which then fostered and progressed the United States' economy throughout the war.
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