Conflict and Economic Consequences: Comparative Notes on “Going to WAR”

Wars are beneficial some argue. Wars are costly others argue. Some experiences prove that technological development in warring situations (may) have positive spin offs later on. Wars can be simultaneously costly and beneficial others argue. Some suggest that being a victor in one war can create a psychosis or collective social memory that propels the victorious state/nation into long term militarist adventures that eventually leads to its downfall. Against this background we are discussing four case studies.

These paper explores in some detail four economies in terms of preparations and consequences during the Second World War, namely that of Nazi Germany, the UK, the USA and South Africa. A look is taken at the economic state of these countries before the war, preparing for war, economic developments during the waging of the war and the socio-economic and political outcomes. It concludes with some lessons learnt and pointers for the future. In our conclusion the reader may find in his / her own deduction that going to war – even if coming out victorious – may be far costlier on the long term than we tend to think.