Unformatted text preview: The Business of War The Business of War
Lecture Fourteen History 113 War and Government Intervention War and Government Intervention War increases level of government intervention in the economy and business: Cost of financing total war New financial sources needed Shortages of resources and demands of production for war Centralized control of the economy Increases the partnership between business and the state World War I World War I Preparedness for war in 1914? Wartime Production Coordination Shell Production Committee: To allocate production contracts. Mismanagement, incompetence, profiteering Imperial Munitions Board Headed by Joseph Flavelle (picture) World War I World War I Business State Relationship “Traditional” methods: Relations between politicians and businessmen Government promotion of private business sector New methods: State owned business (air craft WWI) World War I World War I Government control of economy: Shortages = inflation and price increases Economic management of economy (prices, labour management, resource allocation) Financing of War: New forms of taxation CanadaU.S. Economic Integration World War II World War II Preparedness for War? (John Inglis Co. – Bren gun girl) British Commonwealth Air Training Plan Wartime production coordination: Department of Munitions and Supply Greater gov’t coordination and promotion of business World War II World War II State owned business Government control of economy: (C.D. Howe) Complete control and regulation (of wages, prices, labour, resources) Wartime Prices and Trade Board Economic integration with U.S. (Permanent Joint Board of Defence & Hyde Park Agreement) Consequences ...
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- Fall '09
- History, Economic system, Wartime Production Coordination