The term and economic measure GDP (gross domestic product) was first used by the United States Commerce Department in the 1930s during the depression.
It was first put to full working use during WW2 by British and American economists, including Keynes.
Keynes played a major role in both WW1 and WW2. In WW1 he put forward the argument that the war should be held at the stalemate it had become. Germany blockaded from all sides and starved into surrender. This actually happened Germany faced starvation and famine as a result of the blockade. Keynes' economic warfare plan was put into action, minus the stalemate and millions of young men died.
In WW2 GDP was used as a measure of production capacity.
The economists were given the job of analysing if an all out war like WW2 was viable. They used GDP as a primary measure of economic activity in the analysis of the viability of war.
They all agreed that war, for America at least, whose economy boomed during the war is economically viable.
No comments:
Post a Comment