Certainly that war was a milestone in U. Few historians, however, describe the costs of the war.
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. Economic Effects of War Wars are expensive in money and other resourcesdestructive of capital and human capitaland disruptive of trade, resource availability, labor management.
Large wars constitute severe shocks to the economies of participating countries. Notwithstanding some positive aspects of short-term stimulation and long-term destruction and rebuilding, war generally impedes economic development and undermines prosperity.
Several specific economic effects of war recur across historical eras and locales. Inflation The most consistent short-term economic effect of war is to push up prices, and consequently to reduce living standards.
This war-induced inflation was described in ancient China by the strategist Sun Tzu: Paying for wars is a central problem for states see War Finance. This was especially true in early modern Europe fifteenth to eighteenth centurieswhen war relied heavily on mercenary forces.
The king of Spain was advised that waging war required three things - money, money, and more money. Spain and Portugal imported silver and gold from America to pay for armies, but in such large quantities that the value of these metals eventually eroded.
One way governments pay for war is to raise taxes which in turn reduces civilian spending and investment. A third way to fund war is to print more currency, which fuels inflation.
Inflation thus often acts as an indirect tax on a national economy to finance war. Industrial warfare, and especially the two World Wars, created inflationary pressures across large economies. Increasingly, governments mobilized entire societies for war - conscripting labor, bidding up prices in markets for natural resources and industrial goods, and diverting capital and technology from civilian to military applications.
World War I caused ruinous inflation as participants broke from the gold standard and issued currency freely. Inflation also accompanied the U.
War-induced inflation, although strongest in war zones, extends to distant belligerents, such as the United States in the World Wars, and, in major wars, even to neutral countries, owing to trade disruption and scarcities.
Present-day wars continue to fuel inflation and drive currencies towards worthlessness. In Angola's civil warfor example, the government currency became so useless that an alternative "hard" currency - bottles of beer - came to replace it in many daily transactions.
Capital Depletion In addition to draining money and resources from participants' economies, most wars create zones of intense destruction of capital such as farms, factories, and cities.
These effects severely depress economic output. The famine and plague that accompanied the Thirty Years' War killed as much as one-third of Germany's population, as mercenaries plundered civilians and civilians became mercenaries to try to survive. World War I reduced French production by nearly half, starved hundreds of thousands of Germans to death, and led to more than a decade of lower Soviet output.
Battle casualties, war-induced epidemics, and other demographic disruptions have far-reaching effects. World War I contributed to the influenza epidemic that killed millions. Quincy Wright estimates that "at least 10 percent of deaths in modern civilization can be attributed directly or indirectly to war" Wright, Wars also temporarily shake up gender relations among other demographic variablesas when men leave home and women take war jobs to replenish the labor force, as in the Soviet Union, Britain, and the United States during World War II.
Countries that can fight wars beyond their borders avoid the most costly destruction though not the other costs of war. For example, the Dutch towards the end of the Thirty Years' War, the British during the Napoleonic Wars, the Japanese in World War I, and the Americans in both World Wars enjoyed this relative insulation from war's destruction, which meanwhile weakened their economic rivals.
Positive Economic Effects War is not without economic benefits, however. These are not limited to having misfortune strike trade rivals. At certain historical times and places, war can stimulate a national economy in the short term.No nation could emerge from the cauldron of national crisis without profound social and cultural changes.
While many undesirable vices associated with hopelessness were on the rise, many family units were also strengthened through the crisis. Social, Political and Economic Effects of the Cold War.: A Coggle Diagram about Europe (Western Europe and Eastern Europe/Warsaw Pact), Americas (North America and South/Central America), Asia (East Asia (Social - China experienced a period of social reform post-Chairman Mao.
People were permitted to wear western clothing, but the peoples were still forbidden from speaking out against the. Social Effects of the Civil War Families were torn apart Brothers against brothers, fathers against sons, daughters against mothers, people were divided because people were choosing different sides.
Even after President Lincoln's Emancipation Proclamation, people didn't follow it and still had. New technologies showing America's emerging industrial greatness were refined the Civil War: the railroad, the steamboat, the telegraph, and the steam-powered printing press then it is, at least partially, the massive industrial and economic expansion enabled by the Civil War that allowed us to ascend to that role in the first place.
[The following is before copyediting and differs slightly from the published version.] War and Economic History. War has influenced economic history profoundly across time and space. Economic inequality is the difference found in various measures of economic well-being among individuals in a group, among groups in a population, or among tranceformingnlp.comic inequality sometimes refers to income inequality, wealth inequality, or the wealth tranceformingnlp.comists generally focus on economic disparity in three metrics: wealth, income, and consumption.