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War economy

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A war economy or wartime economy is the set of preparations undertaken by a modern state to mobilize its economy for war production . Philippe Le Billon describes a war economy as a "system of producing, mobilizing and allocating resources to sustain the violence." Some measures taken include the increasing of interest rates as well as the introduction of resource allocation programs. Approaches to the reconfiguration of the economy differ from country to country.

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122-632: Many states increase the degree of planning in their economies during wars; in many cases this extends to rationing , and in some cases to conscription for civil defenses , such as the Women's Land Army and Bevin Boys in the United Kingdom during World War II . During total war situations, certain buildings and positions are often seen as important targets by combatants . The Union blockade , Union General William Tecumseh Sherman 's March to

244-413: A market economy , a free price system is intended to serve this purpose). This difficulty was notably written about by economists Ludwig von Mises and Friedrich Hayek , who referred to subtly distinct aspects of the problem as the economic calculation problem and local knowledge problem , respectively. These distinct aspects were also present in the economic thought of Michael Polanyi . Whereas

366-515: A 250 kg bomb underneath the fuselage, the later model arriving during the battle. The Bf 109, unlike the Stuka , could fight on equal terms with RAF fighters after releasing its ordnance . At the start of the battle, the twin-engined Messerschmitt Bf 110C long-range Zerstörer ("Destroyer") was also expected to engage in air-to-air combat while escorting the Luftwaffe bomber fleet. Although

488-694: A New Socialism (1993), the computer scientist Paul Cockshott from the University of Glasgow and the economist Allin Cottrell from Wake Forest University claim to demonstrate how a democratically planned economy built on modern computer technology is possible and drives the thesis that it would be both economically more stable than the free-market economies and also morally desirable. The use of computers to coordinate production in an optimal fashion has been variously proposed for socialist economies . The Polish economist Oskar Lange (1904–1965) argued that

610-538: A base for the successful prosecution of the air and sea war against England". On 29 November, OKW "Directive No. 9 – Instructions For Warfare Against The Economy Of The Enemy" stated that once this coastline had been secured, the Luftwaffe together with the Kriegsmarine (German Navy) was to blockade UK ports with sea mines. They were to attack shipping and warships and make air attacks on shore installations and industrial production. This directive remained in force in

732-411: A competing marketplace to meet the needs of the most consumers most efficiently. This phenomenon is recognized as spontaneous order . Additionally, misallocation of resources would naturally ensue by redirecting capital away from individuals with direct knowledge and circumventing it into markets where a coercive monopoly influences behavior, ignoring market signals. According to Tibor Machan , "[w]ithout

854-510: A desired pattern. In international comparisons, state-socialist nations have compared favorably with capitalist nations in health indicators such as infant mortality and life expectancy. However, according to Michael Ellman , the reality of this, at least regarding infant mortality, varies depending on whether official Soviet or WHO definitions are used. The state can begin building massive heavy industries at once in an underdeveloped economy without waiting years for capital to accumulate through

976-567: A distributed network of disparate economic agents or even production units itself. Decentralized planning is usually held in contrast to centralized planning, in particular the Soviet-type economic planning of the Soviet Union 's command economy, where economic information is aggregated and used to formulate a plan for production, investment and resource allocation by a single central authority. Decentralized planning can take shape both in

1098-404: A fictional planned economy in a United States around the year 2000 which has become a socialist utopia. Other literary portrayals of planned economies include Yevgeny Zamyatin 's We (1924). The government can harness land , labor , and capital to serve the economic objectives of the state. Consumer demand can be restrained in favor of greater capital investment for economic development in

1220-555: A focus on the management of the Soviet economy. Opposition from the Defence Ministry killed Kitov's plan. In 1971 the socialist Allende administration of Chile launched Project Cybersyn to install a telex machine in every corporation and organization in the economy for the communication of economic data between firms and the government. The data was also fed into a computer-simulated economy for forecasting. A control room

1342-584: A handful of agencies helped funnel resources towards the war effort. One prominent agency was the War Production Board (WPB), which "awarded defense contracts, allocated scarce resources – such as rubber, copper, and oil – for military uses, and persuaded businesses to convert to military production." The United States mass-produced many vehicles , such as ships (i.e. Liberty Ships ), aircraft (i.e. North American P-51 Mustang ), jeeps (i.e. Willys MB ) and tanks (i.e. M4 Sherman ). Two-thirds of

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1464-817: A hasty version of planning with unrealistic targets, bureaucratic waste, bottlenecks and shortages . Stalin's formulations of national plans in terms of physical quantity of output was also attributed by Daniels as a source for the stagnant levels of efficiency and quality. Economist Robin Hahnel , who supports participatory economics , a form of socialist decentralized planned economy, notes that even if central planning overcame its inherent inhibitions of incentives and innovation, it would nevertheless be unable to maximize economic democracy and self-management, which he believes are concepts that are more intellectually coherent, consistent and just than mainstream notions of economic freedom. Furthermore, Hahnel states: Combined with

1586-557: A last resort once the British economy had been damaged and the Luftwaffe had full air superiority. On 2 July, OKW requested preliminary plans. In Britain, Churchill described "the great invasion scare" as "serving a very useful purpose" by "keeping every man and woman tuned to a high pitch of readiness". Historian Len Deighton stated that on 10 July Churchill advised the War Cabinet that invasion could be ignored, as it "would be

1708-538: A market in which allocations can be made in obedience to the law of supply and demand, it is difficult or impossible to funnel resources with respect to actual human preferences and goals". Historian Robert Vincent Daniels regarded the Stalinist period to represent an abrupt break with Lenin's government in terms of economic planning in which an deliberated, scientific system of planning that featured former Menshevik economists at Gosplan had been replaced with

1830-496: A means to avoid the need for more permanent militarization. During World War II, U.S. President Franklin D. Roosevelt stated that if the Axis powers won, then "we would have to convert ourselves permanently into a militaristic power on the basis of war economy." The United States has a very complex history with wartime economies. Many notable instances came during the twentieth century in which America's main conflicts consisted of

1952-567: A more capable opponent than any it had previously met: a sizeable, highly coordinated, well-supplied, modern air force. The Luftwaffe's Messerschmitt Bf 109E and Bf 110C fought against the RAF's workhorse Hurricane Mk I and the less numerous Spitfire Mk I ; Hurricanes outnumbered Spitfires in RAF Fighter Command by about 2:1 when war broke out. The Bf 109E had a better climb rate and was up to 40 mph faster in level flight than

2074-404: A more democratic political system, and redone to closer approximate a best case version, centrally planned economies no doubt would have performed better. But they could never have delivered economic self-management, they would always have been slow to innovate as apathy and frustration took their inevitable toll, and they would always have been susceptible to growing inequities and inefficiencies as

2196-529: A most hazardous and suicidal operation". On 11 July, Hitler agreed with Raeder that invasion would be a last resort, and the Luftwaffe advised that gaining air superiority would take 14 to 28 days. Hitler met his army chiefs, von Brauchitsch and Halder , at the Berchtesgaden on 13 July where they presented detailed plans on the assumption that the navy would provide safe transport. Von Brauchitsch and Halder were surprised that Hitler took no interest in

2318-407: A planned economy in that a comprehensive and binding plan did not guide production and investment. The further distinction of an administrative-command system emerged as a new designation in some academic circles for the economic system that existed in the former Soviet Union and Eastern Bloc , highlighting the role of centralized hierarchical decision-making in the absence of popular control over

2440-457: A post-capitalist society. Decentralized planning has been a feature of anarchist and socialist economics . Variations of decentralized planning such as economic democracy , industrial democracy and participatory economics have been promoted by various political groups, most notably anarchists , democratic socialists , guild socialists , libertarian Marxists , libertarian socialists , revolutionary syndicalists and Trotskyists . During

2562-654: A project called Million Programme , implemented from 1965 to 1974. Some decentralized participation in economic planning occurred across Revolutionary Spain, most notably in Catalonia, during the Spanish Revolution of 1936 . In the May 1949 issue of the Monthly Review titled " Why Socialism? ", Albert Einstein wrote: I am convinced there is only one way to eliminate these grave evils, namely through

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2684-446: A similar proposal; when rebuffed, he told Churchill that interference with German domination would mean war. To Hitler's great annoyance, all his diplomacy failed to stop Britain from declaring war when he invaded Poland. During the fall of France, he repeatedly discussed peace efforts with his generals. When Churchill came to power, there was still wide support for Halifax, who as Foreign Secretary openly argued for peace negotiations in

2806-408: A spirit of self-sacrifice rather than mandatory rationing." Propaganda also played a large part in garnering support for topics ranging from tax initiatives to food conservation. Speaking on Four Minute Men , volunteers who rallied the public through short speeches, investigative journalist George Creel stated that the idea was extremely popular and the program saw thousands of volunteers throughout

2928-446: A study (in 1939) on the possibility of an invasion of Britain and concluded that it also required naval superiority. The Luftwaffe said invasion could only be "the final act in an already victorious war." Hitler first discussed the idea of an invasion at a 21 May 1940 meeting with Grand Admiral Erich Raeder, who stressed the difficulties and his own preference for a blockade. OKW Chief of Staff Jodl's 30 June report described invasion as

3050-643: A surprise to the Jagdwaffe , although the German pilots retained a strong belief that the 109 was the superior fighter. The British fighters were equipped with eight Browning .303 (7.7mm) machine guns while most Bf 109Es had two 20mm cannons supplemented by two 7.92mm machine guns. The 20mm cannons were much more effective than the .303; during the Battle it was not unknown for damaged German bombers to limp home with up to two hundred .303 hits. At some altitudes,

3172-659: A waste of strategic effort. The defeat of France in June 1940 introduced the prospect for the first time of independent air action against Britain. A July Fliegercorps I paper asserted that Germany was by definition an air power: "Its chief weapon against England is the Air Force, then the Navy, followed by the landing forces and the Army." In 1940, the Luftwaffe would undertake a " strategic offensive ... on its own and independent of

3294-399: Is a type of economic system where investment , production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized , decentralized , participatory or Soviet-type forms of economic planning . The level of centralization or decentralization in decision-making and participation depends on

3416-591: Is also defeated, the fundamental conditions for a successful war against England will have been secured. England can then be blockaded from Western France at close quarters by the Air Force, while the Navy with its submarines extend the range of the blockade." When war commenced, Hitler and the OKW ( Oberkommando der Wehrmacht or "High Command of the Armed Forces") issued a series of directives ordering, planning and stating strategic objectives. "Directive No. 1 for

3538-540: Is another example that followed war economy principles, especially during the 2020 Nagorno-Karabakh war . Armenia is a small country in a blockade in the Caucasus region but still increased its military budget after 2018 reaching $ 640 million. In 2019 it was 18.8% of the total Armenian budget. Except mobilizing financial resources, Armenia also declared mobilization and concentrated human capital (volunteers, doctors, soldiers). Planned economy A planned economy

3660-473: Is contested by some Marxists . Decentralized planning has been proposed as a basis for socialism and has been variously advocated by anarchists , council communists , libertarian Marxists and other democratic and libertarian socialists who advocate a non-market form of socialism, in total rejection of the type of planning adopted in the economy of the Soviet Union . Most of a command economy

3782-541: Is derived from the This was their finest hour speech delivered by Winston Churchill in the House of Commons on 18 June, more than three weeks prior to the generally accepted date for the start of the battle: ... What General Weygand called the Battle of France is over. I expect that the battle of Britain is about to begin. Upon this battle depends the survival of Christian civilization. Upon it depends our own British life and

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3904-424: Is highly undemocratic and totalitarian in practice. Indicative planning is a form of economic planning in market economies that directs the economy through incentive-based methods. Economic planning can be practiced in a decentralized manner through different government authorities. In some predominantly market-oriented and Western mixed economies, the state utilizes economic planning in strategic industries such as

4026-461: Is organized in a top-down administrative model by a central authority, where decisions regarding investment and production output requirements are decided upon at the top in the chain of command , with little input from lower levels. Advocates of economic planning have sometimes been staunch critics of these command economies. Leon Trotsky believed that those at the top of the chain of command, regardless of their intellectual capacity, operated without

4148-577: Is reserved to me. Attacks on the English homeland are to be prepared, bearing in mind that inconclusive results with insufficient forces are to be avoided in all circumstances. Both France and the UK declared war on Germany; on 9 October, Hitler's "Directive No. 6" planned the offensive to defeat these allies and "win as much territory as possible in the Netherlands, Belgium, and northern France to serve as

4270-821: The Egyptian countryside, for Hellenistic India , and to a lesser degree the more barbaric regions of the Seleucid , the Pergamenian , the southern Arabian , and the Parthian empires". Scholars have argued that the Incan economy was a flexible type of command economy, centered around the movement and utilization of labor instead of goods. One view of mercantilism sees it as involving planned economies. The Soviet-style planned economy in Soviet Russia evolved in

4392-526: The Luftwaffe was formally announced, with Walther Wever as Chief of Staff. The 1935 Luftwaffe doctrine for "Conduct of Air War" ( Luftkriegführung ) set air power within the overall military strategy, with critical tasks of attaining (local and temporary) air superiority and providing battlefield support for army and naval forces. Strategic bombing of industries and transport could be decisive longer-term options, dependent on opportunity or preparations by

4514-487: The NEP period to counter structural inefficiency and the problem of bureaucracy. Economist Pat Devine has created a model of decentralized economic planning called "negotiated coordination" which is based upon social ownership of the means of production by those affected by the use of the assets involved, with the allocation of consumer and capital goods made through a participatory form of decision-making by those at

4636-540: The Spanish Revolution , some areas where anarchist and libertarian socialist influence through the CNT and UGT was extensive, particularly rural regions, were run on the basis of decentralized planning resembling the principles laid out by anarcho-syndicalist Diego Abad de Santillan in the book After the Revolution . Trotsky had urged economic decentralisation between the state, oblast regions and factories during

4758-886: The World Wars , the Korean War , and the Vietnam War . In mobilizing for World War I , the United States expanded its governmental powers by creating institutions such as the War Industries Board (WIB) to help with military production. Others, such as the Fuel Administration , introduced daylight saving time in an effort to save coal and oil while the Food Administration encouraged higher grain production and "mobilized

4880-519: The supply side, it has been observed that wars sometimes have the effect of accelerating technological progress to such an extent that an economy is greatly strengthened after the war, especially if it has avoided the war-related destruction. This was the case, for example, with the United States in World War I and World War II. Some economists (such as Seymour Melman ) argue, however, that

5002-515: The 1960s. Having been in a continuous state of war since the September 11 attacks, they have an annual military budget larger than India, China, Russia, United Kingdom, Germany, Saudi Arabia, and France’s military budgets combined. Germany has experienced economic devastation following both World Wars. While this was not a result of faulty economic planning, it is important to understand the ways that Germany approached reconstruction. In World War I,

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5124-523: The 1970 Chilean distributed decision support system Project Cybersyn in an attempt to move towards a decentralized planned economy with the experimental viable system model of computed organisational structure of autonomous operative units through an algedonic feedback setting and bottom-up participative decision-making in the form of participative democracy by the Cyberfolk component. The 1888 novel Looking Backward by Edward Bellamy depicts

5246-695: The American economy had been integrated into the war effort by the end of 1943. Because of this massive cooperation between government and private entities, it could be argued that the economic measures enacted prior to and during the Second World War helped lead the Allies to victory. The United States has been involved in numerous military endeavours within the Middle East and Latin America since

5368-585: The Battle period he sought neutrality or a peace treaty with Britain. In a secret conference on 23 May 1939, Hitler set out his rather contradictory strategy that an attack on Poland was essential and "will only be successful if the Western Powers keep out of it. If this is impossible, then it will be better to attack in the West and to settle Poland at the same time" with a surprise attack. "If Holland and Belgium are successfully occupied and held, and if France

5490-595: The Bf 109 could outclimb the British fighter. It could also engage in vertical-plane negative- g manoeuvres without the engine cutting out because its DB 601 engine used fuel injection ; this allowed the 109 to dive away from attackers more readily than the carburettor -equipped Merlin. On the other hand, the Bf 109E had a much larger turning circle than its two foes. In general, though, as Alfred Price noted in The Spitfire Story : ... the differences between

5612-538: The British Foreign Secretary , Lord Halifax , and certain elements of the British public favoured a negotiated peace with an ascendant Germany, Churchill and a majority of his Cabinet refused to consider an armistice. Instead, Churchill used his skilful rhetoric to harden public opinion against capitulation and prepare the British for a long war. The Battle of Britain has the unusual distinction that it gained its name before being fought. The name

5734-527: The British trade". Instead of the Wehrmacht attacking the French, the Luftwaffe with naval assistance was to block imports to Britain and attack seaports. "Should the enemy resort to terror measures – for example, to attack our towns in western Germany" they could retaliate by bombing industrial centres and London. Parts of this appeared on 29 November in "Directive No. 9" as future actions once

5856-551: The Channel. In September, RAF Bomber Command night raids disrupted the German preparation of converted barges, and the Luftwaffe's failure to overwhelm the RAF forced Hitler to postpone and eventually cancel Operation Sea Lion. The Luftwaffe proved unable to sustain daylight raids, but their continued night-bombing operations on Britain became known as the Blitz. Germany's failure to destroy Britain's air defences and force it out of

5978-632: The Conduct of the War", dated 31 August 1939, instructed the invasion of Poland on 1 September as planned . Potentially, Luftwaffe "operations against England" were to: dislocate English imports, the armaments industry, and the transport of troops to France. Any favourable opportunity of an effective attack on concentrated units of the English Navy, particularly on battleships or aircraft carriers, will be exploited. The decision regarding attacks on London

6100-401: The French surrender on 22 June 1940, Hitler mainly focused his energies on the possibility of invading the Soviet Union . He believed that the British, defeated on the continent and without European allies, would quickly come to terms. The Germans were so convinced of an imminent armistice that they began constructing street decorations for the homecoming parades of victorious troops. Although

6222-427: The German agricultural sector was hit hard by the demands of the war effort. Not only were many of the workers conscripted, but much of the food itself was allocated for the troops leading to a shortage. "German authorities were not able to solve the food scarcity [problem], but implemented a food rationing system and several price ceilings to prevent speculation and profiteering. Unfortunately, these measures did not have

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6344-982: The Gram Sabhas (village-based institutions) and the planners subsequently seek to plan accordingly. Some decentralized participation in economic planning has been implemented across Revolutionary Spain, most notably in Catalonia, during the Spanish Revolution of 1936 . The United Nations has developed local projects that promote participatory planning on a community level. Members of communities make decisions regarding community development directly. Battle of Britain Asia-Pacific Mediterranean and Middle East Other campaigns Coups Luxembourg The Netherlands Belgium France Britain 1941–1943 1944–1945 Germany Strategic campaigns The Battle of Britain ( German : Luftschlacht um England , lit.   'air battle for England')

6466-727: The Low Countries in the Battle of France , leaving Britain to face the threat of invasion by sea. The German high command recognised the difficulties of a seaborne attack while the Royal Navy controlled the English Channel and the North Sea . On 16 July, Hitler ordered the preparation of Operation Sea Lion as a potential amphibious and airborne assault on Britain, to follow once the Luftwaffe had air superiority over

6588-403: The Luftwaffe lacked the means to do much damage to Britain's war economy beyond laying naval mines . Joseph Schmid , in charge of Luftwaffe intelligence, presented a report on 22 November 1939, stating that, "Of all Germany's possible enemies, Britain is the most dangerous." This "Proposal for the Conduct of Air Warfare" argued for a counter to the British blockade and said "Key is to paralyse

6710-604: The Luftwaffe mainly targeting coastal-shipping convoys, as well as ports and shipping centres such as Portsmouth . On 1 August, the Luftwaffe was directed to achieve air superiority over the RAF, with the aim of incapacitating RAF Fighter Command ; 12 days later , it shifted the attacks to RAF airfields and infrastructure . As the battle progressed, the Luftwaffe also targeted factories involved in aircraft production and strategic infrastructure. Eventually, it employed terror bombing on areas of political significance and on civilians. The Germans had rapidly overwhelmed France and

6832-850: The Minister in charge of Defence Coordination, Sir Thomas Inskip , sided with Dowding that "The role of our air force is not an early knock-out blow" but rather was "to prevent the Germans from knocking us out" and fighter squadrons were just as necessary as bomber squadrons. The Spanish Civil War (1936–1939) gave the Luftwaffe Condor Legion the opportunity to test air fighting tactics with their new aeroplanes. Wolfram von Richthofen became an exponent of air power providing ground support to other services. The difficulty of accurately hitting targets prompted Ernst Udet to require that all new bombers had to be dive bombers , and led to

6954-522: The OKW reviewed the potential for an air- and seaborne invasion of Britain: the Kriegsmarine was faced with the threat the Royal Navy's larger Home Fleet posed to a crossing of the English Channel , and together with the German Army viewed control of airspace as a necessary precondition. The German navy thought air superiority alone was insufficient; the German naval staff had already produced

7076-477: The Rotol (constant speed propeller) equipped Hurricane Mk I, depending on altitude. The speed and climb disparity with the original non-Rotol Hurricane was even greater. By mid-1940, all RAF Spitfire and Hurricane fighter squadrons converted to 100 octane aviation fuel, which allowed their Merlin engines to generate significantly more power and an approximately 30 mph increase in speed at low altitudes through

7198-533: The Sea during the American Civil War , and the strategic bombing of enemy cities and factories during World War II are all examples of total war. Concerning the side of aggregate demand , the concept of a war economy has been linked to the concept of " military Keynesianism ", in which the government's military budget stabilizes business cycles and fluctuations and/or is used to fight recessions . On

7320-474: The Soviet Union. Erhard Milch organised rapid expansion, and following the 1933 Nazi seizure of power , his subordinate Robert Knauss formulated a deterrence theory incorporating Douhet's ideas and Tirpitz's "risk theory" . This proposed a fleet of heavy bombers to deter a preventive attack by France and Poland before Germany could fully rearm. A 1933–34 war game indicated a need for fighters and anti-aircraft protection as well as bombers. On 1 March 1935,

7442-476: The Soviet economy on the basis of a network of computing centers in 1959. Kitov's proposal was rejected, as later was the 1962 OGAS economy management network project. Soviet cybernetician , Viktor Glushkov argued that his OGAS information network would have delivered a fivefold savings return for the Soviet economy over the first fifteen-year investment. Salvador Allende 's socialist government pioneered

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7564-619: The Spitfire and the Me 109 in performance and handling were only marginal, and in a combat they were almost always surmounted by tactical considerations of which side had seen the other first, which had the advantage of sun, altitude, numbers, pilot ability, tactical situation, tactical co-ordination, amount of fuel remaining, etc. The Bf 109E was also used as a Jabo ( jagdbomber , fighter-bomber ) – the E-4/B and E-7 models could carry

7686-481: The abyss of a new Dark Age made more sinister, and perhaps more protracted, by the lights of a perverted science. Let us therefore brace ourselves to our duties, and so bear ourselves that, if the British Empire and its Commonwealth last for a thousand years, men will still say, "This was their finest hour". From the outset of his rise to power, Adolf Hitler expressed admiration for Britain, and throughout

7808-459: The aerospace industry. Mixed economies usually employ macroeconomic planning while micro-economic affairs are left to the market and price system. A decentralized-planned economy, occasionally called horizontally planned economy due to its horizontalism , is a type of planned economy in which the investment and allocation of consumer and capital goods is explicated accordingly to an economy-wide plan built and operatively coordinated through

7930-433: The army and navy. It could be used to overcome a stalemate, or used when only destruction of the enemy's economy would be conclusive. The list excluded bombing civilians to destroy homes or undermine morale, as that was considered a waste of strategic effort, but the doctrine allowed revenge attacks if German civilians were bombed. A revised edition was issued in 1940, and the continuing central principle of Luftwaffe doctrine

8052-575: The biggest in Europe." This is further supported when they later reveal how the French economy provided for 11 percent of Germany's national income (during the occupation) which covered five months of Germany's total income for the war. Using extortion and forced labor, the Nazis siphoned off much of France's economic output. For example, during the early months of the Nazi occupation, the French puppet government

8174-401: The coast had been conquered. On 24 May 1940 "Directive No. 13" authorised attacks on the blockade targets, as well as retaliation for RAF bombing of industrial targets in the Ruhr. After the defeat of France, the OKW felt they had won the war, and some more pressure would persuade Britain to give in. On 30 June, the OKW Chief of Staff Alfred Jodl issued his paper setting out options: the first

8296-428: The computer is more efficient than the market process at solving the multitude of simultaneous equations required for allocating economic inputs efficiently (either in terms of physical quantities or monetary prices). In the Soviet Union, Anatoly Kitov had proposed to the Central Committee of the Communist Party of the Soviet Union a detailed plan for the re-organization of the control of the Soviet armed forces and of

8418-402: The conduct of air and sea warfare against England" issued on 1 August attempted to keep all the options open. The Luftwaffe's Adlertag campaign was to start around 5 August, subject to weather, with the aim of gaining air superiority over southern England as a necessary precondition of invasion, to give credibility to the threat and give Hitler the option of ordering the invasion. The intention

8540-563: The context of a mixed economy as well as in a post-capitalist economic system. This form of economic planning implies some process of democratic and participatory decision-making within the economy and within firms itself in the form of industrial democracy . Computer-based forms of democratic economic planning and coordination between economic enterprises have also been proposed by various computer scientists and radical economists . Proponents present decentralized and participatory economic planning as an alternative to market socialism for

8662-439: The continent, and on 30 June the OKW Chief of Staff, Alfred Jodl , issued his review of options to increase pressure on Britain to agree to a negotiated peace. The first priority was to eliminate the RAF and gain air supremacy. Intensified air attacks against shipping and the economy could affect food supplies and civilian morale in the long term. Reprisal attacks of terror bombing had the potential to cause quicker capitulation, but

8784-536: The continuing influence of the 1935 "Conduct of the Air War" doctrine, the main focus of the Luftwaffe command (including Göring) was in concentrating attacks to destroy enemy armed forces on the battlefield, and "blitzkrieg" close air support of the army succeeded brilliantly. They reserved strategic bombing for a stalemate situation or revenge attacks, but doubted if this could be decisive on its own and regarded bombing civilians to destroy homes or undermine morale as

8906-682: The defending armies in Norway in early 1940 created a significant political crisis in Britain. In early May 1940, the Norway Debate questioned the fitness for office of the British Prime Minister Neville Chamberlain . On 10 May, the same day Winston Churchill became British Prime Minister, the Germans initiated the Battle of France with an aggressive invasion of French territory. RAF Fighter Command

9028-530: The desired success." Heading into the Second World War , the Nazis introduced new policies that not only caused the unemployment rate to drop, it created a competent war machine in clear violation of the Treaty of Versailles . The Third Reich implemented a draft and built factories to supply its quickly expanding military. Both of these actions created jobs for many Germans who had been struggling from

9150-551: The development of the Knickebein system for night time navigation. Priority was given to producing large numbers of smaller aeroplanes, and plans for a long-range, four-engined strategic bomber were cancelled. The early stages of the Second World War saw successful German invasions on the continent, aided decisively by the air power of the Luftwaffe, which was able to establish tactical air superiority with great effectiveness. The speed with which German forces defeated most of

9272-443: The economic collapse following World War I. However, it is worth noting that while unemployment rates plummeted, "by 1939, government debt stood at over 40 billion Reichsmarks (equivalent to 178 billion 2021 euros)." During the war, Germany heavily exploited the economies of countries it conquered . The most important among these, according to historians Boldorf and Scherner, was France and "her highly developed economy... [being] one of

9394-695: The economy. More recent approaches to socialist planning and allocation have come from some economists and computer scientists proposing planning mechanisms based on advances in computer science and information technology. Planned economies contrast with unplanned economies , specifically market economies , where autonomous firms operating in markets make decisions about production, distribution, pricing and investment. Market economies that use indicative planning are variously referred to as planned market economies , mixed economies and mixed market economies . A command economy follows an administrative-command system and uses Soviet-type economic planning which

9516-621: The economy. The possibility of a digital planned economy was explored in Chile between 1971 and 1973 with the development of Project Cybersyn and by Aleksandr Aleksandrovich Kharkevich , head of the Department of Technical Physics in Kiev in 1962. While both economic planning and a planned economy can be either authoritarian or democratic and participatory , democratic socialist critics argue that command economies under modern-day communism

9638-457: The economy. The goal of such an economic system would be to achieve conscious control over the economy by the population, specifically so that the use of the surplus product is controlled by the producers. The specific forms of planning proposed for socialism and their feasibility are subjects of the socialist calculation debate . In 1959 Anatoly Kitov proposed a distributed computing system (Project "Red Book", Russian : Красная книга ) with

9760-536: The effect on morale was uncertain. On the same day, the Luftwaffe Commander-in-Chief, Hermann Göring issued his operational directive: to destroy the RAF, thus protecting German industry, and also to block overseas supplies to Britain. The German Supreme Command argued over the practicality of these options. In "Directive No. 16 – On preparations for a landing operation against England" on 16 July, Hitler required readiness by mid-August for

9882-420: The effects of differential economic power grew. Under central planning neither planners, managers, nor workers had incentives to promote the social economic interest. Nor did impeding markets for final goods to the planning system enfranchise consumers in meaningful ways. But central planning would have been incompatible with economic democracy even if it had overcome its information and incentive liabilities. And

10004-457: The establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals. In such an economy, the means of production are owned by society itself and are utilized in a planned fashion. A planned economy, which adjusts production to the needs of the community, would distribute the work to be done among all those able to work and would guarantee a livelihood to every man, woman, and child. The education of

10126-421: The expansion of light industry and without reliance on external financing. This is what happened in the Soviet Union during the 1930s when the government forced the share of gross national income dedicated to private consumption down from 80% to 50%. As a result of this development, the Soviet Union experienced massive growth in heavy industry, with a concurrent massive contraction of its agricultural sector due to

10248-621: The first independent strategic bombing campaign. Hitler's 1925 book Mein Kampf mostly set out his hatreds: he only admired ordinary German World War I soldiers and Britain, which he saw as an ally against communism. In 1935 Hermann Göring welcomed news that Britain, as a potential ally, was rearming. In 1936 he promised assistance to defend the British Empire, asking only a free hand in Eastern Europe, and repeated this to Lord Halifax in 1937. That year, von Ribbentrop met Churchill with

10370-475: The first phase of the Battle of Britain. It was reinforced on 24 May during the Battle of France by "Directive No. 13", which authorised the Luftwaffe "to attack the English homeland in the fullest manner, as soon as sufficient forces are available. This attack will be opened by an annihilating reprisal for English attacks on the Ruhr Basin." By the end of June 1940, Germany had defeated Britain's allies on

10492-441: The former stressed the theoretical underpinnings of a market economy to subjective value theory while attacking the labor theory of value , the latter argued that the only way to satisfy individuals who have a constantly changing hierarchy of needs and are the only ones to possess their particular individual's circumstances is by allowing those with the most knowledge of their needs to have it in their power to use their resources in

10614-483: The individual, in addition to promoting his own innate abilities, would attempt to develop in him a sense of responsibility for his fellow-men in place of the glorification of power and success in our present society. While socialism is not equivalent to economic planning or to the concept of a planned economy, an influential conception of socialism involves the replacement of capital markets with some form of economic planning in order to achieve ex-ante coordination of

10736-450: The input and participation of the millions of people who participate in the economy and who understand/respond to local conditions and changes in the economy. Therefore, they would be unable to effectively coordinate all economic activity. Historians have associated planned economies with Marxist–Leninist states and the Soviet economic model . Since the 1980s, it has been contested that the Soviet economic model did not actually constitute

10858-473: The invasion plans, unlike his usual attitude toward military operations, but on 16 July he issued Directive No. 16, ordering preparations for Operation Sea Lion. The navy insisted on a narrow beachhead and an extended period for landing troops; the army rejected these plans: the Luftwaffe could begin an air attack in August. Hitler held a meeting of his army and navy chiefs on 31 July. The navy said 22 September

10980-548: The labor shortage. Studies of command economies of the Eastern Bloc in the 1950s and 1960s by both American and Eastern European economists found that contrary to the expectations of both groups they showed greater fluctuations in output than market economies during the same period. Critics of planned economies argue that planners cannot detect consumer preferences, shortages and surpluses with sufficient accuracy and therefore cannot efficiently co-ordinate production (in

11102-453: The long continuity of our institutions and our Empire . The whole fury and might of the enemy must very soon be turned on us. Hitler knows that he will have to break us in this island or lose the war. If we can stand up to him, all Europe may be free and the life of the world may move forward into broad, sunlit uplands. But if we fail, then the whole world, including the United States, including all that we have known and cared for, will sink into

11224-404: The measures. Washington felt that a greater bureaucracy was needed to help with mobilization. The government raised taxes which paid for half of the war's costs and borrowed money in the form of war bonds to cover the rest of the bill. "Commercial institutions like banks also bought billions of dollars of bonds and other treasury paper, holding more than $ 24 billion at the war's end." The creation of

11346-528: The merger of the British army and navy air services into the Royal Air Force (RAF). Its first Chief of the Air Staff , Hugh Trenchard , was among the military strategists in the 1920s, like Giulio Douhet , who saw air warfare as a new way to overcome the bloody stalemate of trench warfare . Interception was expected to be nearly impossible, with fighter planes no faster than bombers. Their slogan

11468-452: The most localized level of production. Moreover, organizations that utilize modularity in their production processes may distribute problem solving and decision making. The planning structure of a decentralized planned economy is generally based on a consumers council and producer council (or jointly, a distributive cooperative) which is sometimes called a consumers' cooperative . Producers and consumers, or their representatives, negotiate

11590-521: The other services", according to an April 1944 German account of their military mission. Göring was convinced that strategic bombing could win objectives that were beyond the army and navy, and gain political advantages in the Third Reich for the Luftwaffe and himself. He expected air warfare to decisively force Britain to negotiate, as all in the OKW hoped, and the Luftwaffe took little interest in planning to support an invasion. The Luftwaffe faced

11712-425: The period of large-scale night attacks known as the Blitz , that lasted from 7 September 1940 to 11 May 1941. German historians do not follow this subdivision and regard the battle as a single campaign lasting from July 1940 to May 1941, including the Blitz. The primary objective of the German forces was to compel Britain to agree to a negotiated peace settlement . In July 1940, the air and sea blockade began, with

11834-478: The planned system of regular five-year plans started in 1928. Leon Trotsky was one of the earliest proponents of economic planning during the NEP period. Trotsky argued that specialization , the concentration of production and the use of planning could "raise in the near future the coefficient of industrial growth not only two, but even three times higher than the pre-war rate of 6% and, perhaps, even higher". According to historian Sheila Fitzpatrick ,

11956-412: The possibility of an invasion he called Operation Sea Lion , unless the British agreed to negotiations. The Luftwaffe reported that it would be ready to launch its major attack early in August. The Kriegsmarine Commander-in-Chief, Grand Admiral Erich Raeder , continued to highlight the impracticality of these plans and said sea invasion could not take place before early 1941. Hitler now argued that Britain

12078-528: The quality and quantity of what is to be produced. This structure is central to guild socialism , participatory economics and the economic theories related to anarchism . Some decentralized participation in economic planning has been implemented in various regions and states in India , most notably in Kerala . Local level planning agencies assess the needs of people who are able to give their direct input through

12200-465: The scholarly consensus was that Stalin appropriated the position of the Left Opposition on such matters as industrialisation and collectivisation . After World War II (1939–1945) France and Great Britain practiced dirigisme – government direction of the economy through non-coercive means. The Swedish government planned public-housing models in a similar fashion as urban planning in

12322-445: The specific type of planning mechanism employed. Socialist states based on the Soviet model have used central planning, although a minority such as the former Socialist Federal Republic of Yugoslavia have adopted some degree of market socialism . Market abolitionist socialism replaces factor markets with direct calculation as the means to coordinate the activities of the various socially owned economic enterprises that make up

12444-593: The states. In the case of the Second World War , the U.S. government took similar measures in increasing its control over the economy. The Fall of France and the shifting of the front line into the English Channel with the outcome of the looming Battle of Britain uncertain provided the spark needed to begin conversion to a wartime economy with the passing of the Two-Ocean Navy Act in July 1940. The subsequent Attack on Pearl Harbor prolonged and expanded

12566-579: The tradition of British diplomacy, to secure British independence without war. On 20 May, Halifax secretly requested a Swedish businessman to make contact with Göring to open negotiations. Shortly afterwards, in the May 1940 War Cabinet Crisis , Halifax argued for negotiations involving the Italians, but this was rejected by Churchill with majority support. An approach made through the Swedish ambassador on 22 June

12688-561: The truth is that it survived as long as it did only because it was propped up by unprecedented totalitarian political power. Planned economies contrast with command economies in that a planned economy is "an economic system in which the government controls and regulates production, distribution, prices, etc." whereas a command economy necessarily has substantial public ownership of industry while also having this type of regulation. In command economies, important allocation decisions are made by government authorities and are imposed by law. This

12810-427: The use of an Emergency Boost Override . In September 1940, the more powerful Mk IIa series 1 Hurricanes started entering service in small numbers. This version was capable of a maximum speed of 342 mph (550 km/h), some 20 mph more than the original (non-Rotol) Mk I, though it was still 15 to 20 mph slower than a Bf 109 (depending on altitude). The performance of the Spitfire over Dunkirk came as

12932-584: The wake of a continuing existing World War I war-economy as well as other policies, known as war communism (1918–1921), shaped to the requirements of the Russian Civil War of 1917–1923. These policies began their formal consolidation under an official organ of government in 1921, when the Soviet government founded Gosplan . However, the period of the New Economic Policy ( c.  1921 to c.  1928 ) intervened before

13054-441: The war was the first major German defeat in the Second World War. The Battle of Britain takes its name from the speech given by Prime Minister Winston Churchill to the House of Commons on 18 June: "What General Weygand called the 'Battle of France' is over. I expect that the Battle of Britain is about to begin." Strategic bombing during World War I introduced air attacks intended to panic civilian targets and led in 1918 to

13176-445: The wasteful nature of much of military spending eventually can hurt technological progress. War is often used as a last ditch effort to prevent deteriorating economic conditions or currency crises , particularly by expanding services and employment in the military, and by simultaneously depopulating segments of the population to free up resources and restore the economic and social order . A temporary war economy can also be seen as

13298-558: Was a military campaign of the Second World War , in which the Royal Air Force (RAF) and the Fleet Air Arm (FAA) of the Royal Navy defended the United Kingdom (UK) against large-scale attacks by Nazi Germany 's air force, the Luftwaffe . It was the first major military campaign fought entirely by air forces. The British officially recognise the battle's duration as being from 10 July until 31 October 1940, which overlaps

13420-433: Was built for real-time observation and management of the overall economy. The prototype-stage of the project showed promise when it was used to redirect supplies around a trucker's strike, but after CIA-backed Augusto Pinochet led a coup in 1973 that established a military dictatorship under his rule the program was abolished and Pinochet moved Chile towards a more liberalized market economy . In their book Towards

13542-481: Was characteristic of the former Soviet Union and Eastern Bloc before most of these countries converted to market economies. This highlights the central role of hierarchical administration and public ownership of production in guiding the allocation of resources in these economic systems. In the Hellenistic and post-Hellenistic world, "compulsory state planning was the most characteristic trade condition for

13664-622: Was desperately short of trained pilots and aircraft. Churchill sent fighter squadrons, the Air Component of the British Expeditionary Force , to support operations in France, where the RAF suffered heavy losses. This was despite the objections of its commander Hugh Dowding that the diversion of his forces would leave home defences under-strength. After the evacuation of British and French soldiers from Dunkirk and

13786-560: Was forbidden a military air force by the 1919 Treaty of Versailles , and therefore air crew were trained by means of civilian and sport flying . Following a 1923 memorandum, the Deutsche Luft Hansa airline developed designs for aircraft such as the Junkers Ju 52 , which could carry passengers and freight, but also be readily adapted into a bomber. In 1926, the secret Lipetsk fighter-pilot school began training Germans in

13908-409: Was forced to pay a "quartering" fee of twenty million Reichsmarks per day. Supposedly, the fee was payment for the Nazi occupation forces. In reality, the money was used to fuel the Nazi war economy. Germany employed numerous methods to support its war effort. However, due to the Nazis' surrender to the Allies, it is hard to tell what their economic policies would have yielded in the long term. Armenia

14030-407: Was holding out in hope of assistance from Russia, and the Soviet Union was to be invaded by mid 1941. Göring met his air fleet commanders, and on 24 July issued "Tasks and Goals" of firstly gaining air supremacy, secondly protecting invasion forces and attacking the Royal Navy's ships. Thirdly, they were to blockade imports, bombing harbours and stores of supplies. Hitler's "Directive No. 17 – For

14152-532: Was received in silence, but he did not suggest negotiations and this was perceived as being effectively an ultimatum by the British government, which rejected the offer. Halifax kept trying to arrange peace until he was sent to Washington in December as ambassador, and in January 1941 Hitler expressed continued interest in negotiating peace with Britain. A May 1939 planning exercise by Luftflotte 3 found that

14274-651: Was reported to Hitler, making peace negotiations seem feasible. Throughout July, as the battle started, the Germans made wider attempts to find a diplomatic solution. On 2 July, the day the armed forces were asked to start preliminary planning for an invasion, Hitler got von Ribbentrop to draft a speech offering peace negotiations. On 19 July Hitler made this speech to the German Parliament in Berlin, appealing "to reason and common sense", and said he could "see no reason why this war should go on". His sombre conclusion

14396-467: Was that the bomber will always get through , and that the only defence was a deterrent bomber force capable of matching retaliation. Predictions were made that a bomber offensive would quickly cause thousands of deaths and civilian hysteria leading to capitulation. However, widespread pacifism following the horrors of the First World War contributed to a reluctance to provide resources. Germany

14518-546: Was that destruction of enemy armed forces was of primary importance. The RAF responded to Luftwaffe developments with its 1934 Expansion Plan A rearmament scheme, and in 1936 it was restructured into Bomber Command , Coastal Command , Training Command and Fighter Command . The last was under Hugh Dowding , who opposed the doctrine that bombers were unstoppable: the invention of radar at that time could allow early detection, and prototype monoplane fighters were significantly faster. Priorities were disputed, but in December 1937,

14640-467: Was the earliest possible date and proposed postponement until the following year, but Hitler preferred September. He then told von Brauchitsch and Halder that he would decide on the landing operation eight to fourteen days after the air attack began. On 1 August, he issued Directive No. 17 for intensified air and sea warfare, to begin with Adlertag on or after 5 August, subject to weather, keeping options open for negotiated peace or blockade and siege. Under

14762-428: Was to incapacitate the RAF so much that the UK would feel open to air attack, and would begin peace negotiations. It was also to isolate the UK and damage war production, beginning an effective blockade. Following severe Luftwaffe losses, Hitler agreed at a 14 September OKW conference that the air campaign was to intensify regardless of invasion plans. On 16 September, Göring gave the order for this change in strategy, to

14884-497: Was to increase attacks on shipping, economic targets and the RAF: air attacks and food shortages were expected to break morale and lead to capitulation. Destruction of the RAF was the first priority, and invasion would be a last resort. Göring's operational directive issued the same day ordered the destruction of the RAF to clear the way for attacks cutting off seaborne supplies to Britain. It made no mention of invasion. In November 1939,

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