What Happens To The Economy Post War

A war has a long-term effect on the economy, society, and politics of a country. Post-war is one of the critical moments of a country and a society because this is the time when a country would have a difficult time to recover from the war and to get things back on track. But we know that post-war, it is impossible to make the economy and the society back to normal because of political matters. Now what are the things that happen after a war? Most common is the displacement of the population – since people moved out of their homes because of the war which can result in having minimal protection from the government. Also, increased poverty – since people do not have an income anymore because of the damages that were done during the war, people are now also scarce of natural resources such as food and water. How can we say that an economy is important for a country? An economy is essential in a country because these are a series of systems that make a country developed and successful, and without it, a country may not compete with its neighboring states. Now you know the definition and importance of an economy and events that may happen post-war, not let find out what happens to the economy after a war.


After the time of a war, there is an effect on the economy of not only one country but the entire world. According to Shank, “negative unintended consequences occur either concurrently with the war or develop as residual effects afterwards thereby impeding the economy over the longer term”. This means, the economy would be affected by the war on longer terms which is not good for the world economy. Now, here are the events that could happen post-war:

Destruction of Infrastructure can greatly affect the economy of a country because, if there are no structures related to business, medicines, transportation, and etc. – how can a country function and develop?
Labor force was greatly affected during the war and will also be a problem post-war because of people changing their lifestyles and due to the change of the population. Also, jobs will start to change because of people prioritizing their needs first.

Talking about monetary value post-war, this will reduce the dollar’s value. One example of this in today’s time is when the United States imposed sanctions against Russia due to the Ukraine-Russia conflict.

There are a lot more events that may happen post-war but these are the most common occurrences regarding the economy post-war. The destruction of infrastructure is the main problem post-war because people won’t be able to use transportation anymore since this is not accessible after the war which may hinder the economy to function. Second, the work force will be a challenge to people post-war because job priorities will change – because of less population. Third, is the dollar exchange rate, since the dollar is the most powerful currency (for now), it will decrease its value due to the war that happened which can affect the world economy. With the given facts and assumptions regarding the economy post war, do you still believe that everything will get back to normal?

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