A war economy emerges when a nation reallocates its resources and workforce to support military objectives during wartime. This shift often involves transitioning industrial production from consumer goods to military equipment, with advanced investments in technology, digital services, and centralized government control over industries. The reorientation serves societal defense and leads to increased government spending, potentially resulting in higher taxes, inflation, and reduced welfare. While costly for the average citizen, companies involved in military and technological advancements often thrive, benefiting the overall economy in unexpected ways.
"In a true war economy, all elements of society are reoriented toward defending the homeland."
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