Introduction
The economics of war as defined by the economists is the contingencies that appear in the form of sets that is undertaken by the globalised nation's state to mobilize its economical infrastructure and economy for war production. The great patron of economics, Philippe le billon defined the economics of war or a war economy as the system that is to produce and mobilize the resources to sustain the violence that occurs in the time of war. When the measures are taken to settle the economic infrastructure like tax rates are increased with effect that increasing in the tax rates and resources that are allocated are done as the preventive measures. It is reconfiguration of the economy that is needed at all the stage of production during the war of economics.
The first section of this paper deals with the fact that to the non-economist economics has everything to do with the money, and the economics of war is how the money is paid for the bullets and the bombs. The economics are the subject matter of understanding the human behavior that begins from the assumptions and tends to choose the correct way to achieve them. He economics is ability to have the assumptions on which the conclusion is drawn. With the broad definition of the economics, it is said that the warfare reduces to the problems that relate to the making of the guns and the economic problems. Economics runs with assumptions that everyone has the objectives. (Goldsmith and Brauer)
As it is known that all of the objectives that an individual possess are having the same kind of the objective. The economics of war is very well understood in the terms of the economics that when the war occurs then the production rate is different to that of the production that occurs in the general time. The process of economics war is based on the assumption of how the charges are made by the government to take different kinds of taxes that are increased. Let us consider the example of the battlefield where replaced is the spears with the guns. Then the well-known facts are that in a combat percentage of the soldiers do not fire their guns, and about 100,000 bullets are fired for very soldiers. Economics has the principle of supply and demand. When the war happens then the economy and the infrastructure are affected with the changes occurring at the economics levels it is not the same as it is in the usual times.
There are various instances were the economics of war can be happened and understood that the war is producing the unnecessary production of weapons that is all counted as the waste economy. (Harrison)
The economics underlying the principles of management is not related to the managements of the task but how the productive level of the national growth happens to occur. The economics of war means that at the time of the war, the production at the highest level is affected because the demand for the goods gets increased in the said period and the supply is at the fewer rates. Consider the fat that when the economy is at the low end of the business process then the when the employment is at the low rate then one can say that with the high unemployment rate the government needs to put up the gel to its soldiers. Then to meet the higher order of production it is required to have employment of the large number of workers to meet the demands. That is all of sudden a game of business lose.The government when the war is to start then it prepares well for the war and in all the circumstances the key factor is the production at the national or domestic level that happens to occur. (Poast)
The major changes in the society are resulted with the governments preparing for the wars .the process f managing the war is not a simple task. Let us now first understand what relay the core objective of the economics is. The economics are based on the assumption of satisfying the needs of the consumers and the individual here the term consumer is used for the individuals that have some goal and objectives. The economics of war is a negative subject that is hardly touched by any economist or the analyst. When it requires the study of the process and the aids that are given to the government by the people than it involves lots of media and other kind of criticism at the national stage the economies and the economics of war are different in the senses that economics is the fundamental principle of assumptions for the money and the wealth condition to have the sustained growth and economics of war is dealing with the contingencies that occurs at the war production. Now this paper describes the economics of war. (Solman)
The economics of war is the set of contingencies that is covered during the time of the war production. The wars are not at all good for the economy and the reason is that when the war takes place then with the deficient in the budget lots of taxes are implemented due to which there are less savings on the part of the individuals or the citizens and when he citizens are to pay more kind of taxes then the production level of goods is affected as the production goes higher the demand of the goods is more but the money gets reduced due to which the state of unemployment occurs in the society.
There is a myth that that the market economy is somehow going to be tolerated with the peacetime, the government is in the action to seize the control of production at the times of the war and during wars the resources that are going into the hands of the consumer goods are diverted into the products and are look upon the operations as for the purpose of military consumption that gets fall. The entrepreneurs can gets the benefits when they are permitted to make the earning and thus the government either raises its revenue from the taxes or increases the borrowing in all the circumstances it spends its items on the military funding.
The chief reason for spending the military funding is that when the war occurs then the demand and the requirements are for the fighting personnel only so that at all the stages of production the entrepreneurs who gets the benefit for making the more production of goods are involved with the ease to support that production. In the second world war the Unites states of America the said process was short circuited because of the following reason: the reason was that the real take home pay must not be made fall as the government was reluctant to levy the higher taxes and price controls were made to prevent the war profiteering.
The only solution is to make an intervention in the market. The war and economy of any country can be at any point of time is differentiated as the peaceful coexistence. The economics of the war deals with the sift of production to all the production level of the economy where in such a stage where the production is required for the completion of the demands of the war contingencies.
Then in such kind of the stage the war and the economics cam never be run with the same approach as the war is the destruction and economics of war are the super destructions. The economics of the war is at all the stage looking to the fact that when the war occurs then the government f the respective nation takes a lesson from it and the more taxes and such kind of programs Are made implemented on the citizens.
During the time of war, when the tailor and baker both are going to the war in pace of doing their job with respective area, then is only making a damage to the economy of the nation as when the baker will go there will been supply for the bread and during the war times when there is no supply made to the baker then I is better for the baker to wait for that time when the supply will be made as earlier was made. Tailor on the other hand requires to be but in the condition that tailor has to with it for the suits to come and till then the unemployment and how the wars have impact on the starvation and life of the people can be seen. The war on economics is all related to the destruction level. The economics of war when taken in the realistic sense has the negative impact on the nation. The nation is deeply connected to various social, political and cultural factors but when the economy of the nation is affected with the economics of war then it could be probably said that nation is badly hit up by the war. The war is the term that has always led to the destruction in the materialistic from the destruction of humanity to the affecting of the production level everything is affected by the war. Economics is that branch of science that deals with the truthful assumptions like a soldier fighting in the war needs the food, and this is in bulk provided to them. For example, when the first and the Second World War occurred then it led to the financial instability of the people residing in those nations that were involved in the war time.
The Americans have not forgotten the US-Iraq war that has not only affected the Iraq but also to the America at the greater level. When the gulf war between US and Iraq took place the economics of war took place as a result of it the economics of war here means the supply, demand, production, unemployment or the employment level etc.
In the all stages of war what is commonly observed is that the economics is not improved when the money is wasted and when the wealth and the income distribution is applied in the areas of the war then I gives rise to the heavy loss. Which subsequently affects the life of the common beings?
Conclusion/Recommendations
The economics of war is related to the war time production and all the strategies that are made to improve the conditions in the war time is said to be fruitless as the economics and the economics of the war are two different things. Economics is that branch dealing with the supply and demand in the life of the nation by which is run the different approaches of the nation like HDPO and the economics of the war deals with the war time contingencies that occurs with the destruction to the economy.
The above Figure shows the sources of revenue collected by the Union government during the war. (Eh.net)
References
Eh.net,. 'The Economics Of The Civil War.' N.p., 2014. Web. 24 Sept. 2014.
Goldsmith, Benjamin E, and Jurgen Brauer. Economics Of War And Peace. 1st ed. Bingley, UK: Emerald, 2010. Print.
Harrison, Mark. '1 The Economics Of World War II: An Overview.' The economics of world war II: Six great powers in international comparison (2000): 1. Print.
Poast, Paul. The Economics Of War. 1st ed. New York: McGraw-Hill Irwin, 2006. Print.
Solman, Paul. 'Economics Of War.' The Journal of Economic Education 39.4 (2008): 391--400. Print.
