Reading Yanis Varoufakis' latest book - Technofeudalism, the premise of which is that manufacturing as the driver of capitalism has taken a back seat to the tech entrepreneurs.
He does look a bit Spock, doesn't he? the Leonard Nimoy version.
He highlights key economic dynamics that often occur during and after a war. During wartime, governments often enter into guaranteed price contracts with industries to produce war materials and equipment, creating a surge in production. This increased production can lead to increased profits for those industries.
After the war, there is a need to find alternative markets for these products to sustain the economic gains achieved during wartime. Export markets are a common solution, leading to an export boom in certain industries.
The aftermath of World War II, for example, saw the United States, which was a major wartime producer, engage in the Marshall Plan to help rebuild war-torn Europe and open up export markets. This contributed to the recovery and growth of the U.S. economy during the post-war period.
The exact outcomes can vary depending on the specific circumstances, and not all nations experience the same degree of economic benefit. Additionally, there are ethical and political considerations when it comes to the global arms trade and the export of war materiel.
Needless to say, this export boom applies to the nation that wins the war, not the losing side. That said, the British scramble to repatriate to Britain what it thought was A1 German manufacturing plant, enabled Germany, through the Marshall Plan, to invest in brand new technology, which enabled its economy to leapfrog that of Britain, while we were saddled with antiquated, pre-war German technology.
However, Britain also experienced a postwar export boom for machinery, textiles, steel, coal and chemicals.
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