War And The Market Economy

War has influenced economic history profoundly across time and space. Winners of wars have shaped economic institutions and trade patterns. Wars have influenced technological developments. Above all, recurring war has drained wealth, disrupted markets, and depressed economic growth. The role of war in the world economy is complex, yet pervasive. The shadow of war lies across economic history, influencing its pace and direction, and war continues to both shape economic developments and respond to them. The market economy involves peaceful cooperation. The division of labor cannot function effectively amidst a war. Warfare among primitive tribes did not suffer this drawback because the warring parties had not been engaged in trade before the hostilities. Thus they engaged in total war. Modern wars are won with matériel. Capitalist countries defeat their socialist rivals because private entrepreneurs are more efficient in churning out products, whether consumer goods during peacetime or weapons for their governments. Even so, ultimately war and the market economy are incompatible, as the market relies on peaceful cooperation. This concise and legible book will provide key text to all students, teachers and researchers.

This unique volume offers a definitive new history of European economies at war from 1914 to 1918. It studies how European economies mobilised for war, how existing economic institutions stood up under the strain, how economic development influenced outcomes and how wartime experience influenced post-war economic growth. Leading international experts provide the first systematic comparison of economies at war between 1914 and 1918 based on the best available data for Britain, Germany, France, Russia, the USA, Italy, Turkey, Austria-Hungary and the Netherlands. The editors' overview draws some stark lessons about the role of economic development, the importance of markets and the damage done by nationalism and protectionism. A companion volume to the acclaimed The Economics of World War II, this is a major contribution to our understanding of total war.

This book goes behind the success story of the Federal Republic of Germany since the Second World War to examine the principles underpinning the so-called "economic miracle." A.J. Nicholls examines the intellectual origins and history of the concept of the Social Market Economy, and its implementation in the difficult years of post-war devastation and recovery in West Germany. He traces the struggle of liberal economists to assert their ideas in the unfavorable circumstances from 1933 to 1948, when they triumphed with Erhard's implementation of a policy of liberalization following currency reform. The book analyzes the extent to which West Germany's economic success was due to Erhard's policies, and assesses his attempts to attain the goals of the social market up to 1963, when he became Federal Chancellor. Nicholls's study makes an important contribution to our understanding of the historical dynamics of the German economy and the political culture of the Federal Republic.

The Handbook on the Political Economy of War highlights and explores important research questions and discusses the core elements of the political economy of war.

The years following the end of World War II in Germany were a significant period of change and upheaval. This book on the economic reconstruction of post-war West Germany traces the development of economic and socio-political ideas, and their gradual absorption by mainstream politicians, officials and the general public during the period of transition between 1945 and 1949. In the aftermath of World War II, several German think-tanks, political parties and individuals gave impulse to and then shaped the development of a viable socio-political and economic model between the extremes of laissez-faire capitalism and the collectivist planned economy. In their endeavours to bring into effect their particular economic ideas - often diametrically opposed to one another - the parties of left and right stimulated not only academic and political debate, but also public debate about the political and economic reconstruction of occupied post-war Germany. While all the various neo-liberal approaches assigned to the people sovereign and decisive status in the institutional economic order, and recognised the interdependence of politics, economics and the public, one particular school of economic thought outpaced the others in communicating a model of coordinated economic and social policy, namely the Social Market Economy. Christian Glossner here investigates whether or not it was primarily the subtlety of the political campaign for this model that led to its implementation by the then Economic Council and eventual validation by the German electorate. The programmes published by the principal academic and political groups of the time and the practical day-to-day decisions of the first parliament in post-war Germany are analysed with reference to popular preferences. By examining both the formative involvement of German parties in post-war reconstruction and the role of the public during the process of economic liberalisation, this book provides explanations for why the Social Market Economy prevailed as the socio-political and economic model for the Federal Republic of Germany. It will be of interest to scholars of German, economic and twentieth-century history.

Understanding the rise of state capitalism and its threat to global free markets The End of the Free Market details the growing phenomenon of state capitalism, a system in which governments drive local economies through ownership of market-dominant companies and large pools of excess capital, using them for political gain. This trend threatens America's competitive edge and the conduct of free markets everywhere. An expert on the intersection of economics and politics, Ian Bremmer has followed the rise of state-owned firms in China, Russia, the Arab states of the Persian Gulf, Iran, Venezuela, and elsewhere. He demonstrates the growing challenge that state capitalism will pose for the entire global economy. Among the questions addressed: Are we on the brink of a new kind of Cold War, one that pits competing economic systems in a battle for dominance? Can free market countries compete with state capitalist powerhouses over relations with countries that have elements of both systems-like India, Brazil, and Mexico? Does state capitalism have staying power? This guide to the next big global economic trend includes useful insights for investors, business leaders, policymakers, and anyone who wants to understand important emerging changes in international politics and the global economy.

Even after the experience of WWII and despite the existence of various institutions such as United Nations to avoid conflict between nations, we have not succeeded in making a world free from war. The Cold War, the Vietnam War, the intervention of the superpowers in local conflicts and the spread of terrorism have made this all too clear. This volume brings together contributions by leading international scholars of various countries and reconstructs how economists have dealt with issues that have been puzzling them for nearly three centuries: Can a war be 'rational'? Does international commerce complement or substitute war? Who are the real winners and losers of wars? How are military expenses to be funded? The book offers a refreshing approach to the subject and how we think about the relations between economics and war.

During World War II, the United States helped vanquish the Axis powers by converting its enormous economic capacities into military might. Producing nearly two-thirds of all the munitions used by Allied forces, American industry became what President Franklin D. Roosevelt called "the arsenal of democracy." Crucial in this effort were business leaders. Some of these captains of industry went to Washington to coordinate the mobilization, while others led their companies to churn out weapons. In this way, the private sector won the war—or so the story goes. Based on new research in business and military archives, Destructive Creation shows that the enormous mobilization effort relied not only on the capacities of private companies but also on massive public investment and robust government regulation. This public-private partnership involved plenty of government-business cooperation, but it also generated antagonism in the American business community that had lasting repercussions for American politics. Many business leaders, still engaged in political battles against the New Deal, regarded the wartime government as an overreaching regulator and a threatening rival. In response, they mounted an aggressive campaign that touted the achievements of for-profit firms while dismissing the value of public-sector contributions. This probusiness story about mobilization was a political success, not just during the war, but afterward, as it shaped reconversion policy and the transformation of the American military-industrial complex. Offering a groundbreaking account of the inner workings of the "arsenal of democracy," Destructive Creation also suggests how the struggle to define its heroes and villains has continued to shape economic and political development to the present day.