The Effects Of War On The Economy

1957 WordsJun 26, 20178 Pages
The impact on the economy is strongly overlooked when people mention the consequences of war. Most people believe the consequences of war are simply just a destruction of land and a large number of casualties. However, going to war has a devastating economic impact in any country for a countless number of reasons. No matter how wealthy a country may be, going to war can still strongly affect the economy without a doubt. Many of the reasons on why this is true is mainly because of the macroeconomic cost for manufacturing weapons, financing veteran care, and even borrowing money from other countries that turns into financial debt. As a result, the economy faces many consequences such as declining economic growth, decreasing wealth,…show more content…
As stated earlier, Europe had suffered one of the most devastating impacts during and after WWII. In fact, Europe had suffered more economically after World War II for multiple reasons. Capital depletion was seen everywhere after the war, with cities torn apart and there were bomb craters on every street. Great Britain, inflation had increased rapidly and reached its peak following the war along with France. The currency started to become worthless because of how crumbled the economy had become. Even during the war, massive amounts of money were loaned from the United States to the allies in Europe just to keep the war funded. As a result, many countries in Europe ended up in an enormous amount of debt to America. This left millions of people having to live extremely hard and rough in Europe. Luckily, with the help of the United States, Europe was able to become stable again through the use of the Marshall Plan. The Marshall Plan was created by George Marshall who was the United States Secretary of the State and the idea was to help and support any European countries that had fell victim to the war such as France for example. So, these countries would then receive currency from the United States, which helped Europe extremely well and would have most likely fallen economically if the U.S. did not aid them through the use of the Marshall Plan. In post-WWII Europe, one of the major factors that affected the economy by the war was the
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