What it is:
A war economy centers on producing goods and services thatwar efforts.
How it works (Example):
Why it Matters:
War economies can exist out of necessity if a country feels threatened and must make national defense its priority. War economies can also exist for cultural reasons.
Regardless of the reason, war economies sometimes show more technological, medical and industrial progress because there is a race to create systems, products, services and ideas that protect and defend better and/or more cheaply. War economies sometimes exist at the expense of domestic development and production, however.