Wednesday, September 7, 2011

War Economics

Cost of the war

During times of war, resources become more limited due to the import and export of resources necessary to survive and live the way people are accustomed to. For example, during World War II, there were certain resources that were difficult to receive and distribute throughout the country due to many people being overseas serving in the military as well as difficulty and new dangers regarding imports and exports. The government felt it necessary to bypass the free market and rationed common items, such as sugar, gasoline, tires, meat, and other common items. The results were mixed and the rationing ended almost immediately at the end of the war. Rationing items as opposed to rationing prices is a more effective way because the rich can always afford higher prices, while the common public and poverty stricken citizens would not be able to obtain the goods they need due to their own personal budget constraints. This enables resources to be more evenly distributed rather than having a richer person hoard a large amount of a coveted resource or even having the rich people of the US having the majority of a need resource. It balances who has the resource and ensures that everyone gets the same based on family size and need. Rounding out the economy in the usa.

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