ECO 120 Lecture Notes - Lecture 6: Planned Economy
Document Summary
Allied power utilized their full labor force, they used both men and women workers to produce good and services. Germany spends more money on growing their military power while allies power spends more on building their weapons supplies. Additionally, ussr and the usa have greater resources in oil, coal, etc. Also, germany was fighting in two front war so they have to split up their resources. Germany had inefficient labor and supply with not enough demand (command economy). The significance of this article is why did wwii end up the way it did in terms of military assets and spending wise. Germany spend 1/6 of it"s national income on military expense to build its military. Ussr doesn"t has as much military compare to germany. Great britain only spend 7% of it"s national income when germany spend 16% . the u. s didn"t commit a significant portion of it"s national income until 1940.
