Wednesday, March 25, 2009
War Economy
During WWII Britain's attempts to strengthen militarily only led to a neglection of its home front. Everything from prices to taxes was changed to meet the high demands of the military. For example in order to collect the equivalent of half a trillion dollars, the government doubled taxes, sending all of it towards the war effort. The very highest tax rate was a shocking 98.5%. With out the necessary money, people were unable to afford many things. This made a major impact on the economy, slowing it down greatly. Industries for luxury goods were cut back and even banned by the government. The bare minimum, food and clothes, were available though rations. This sparked the need for more, causing the Black Market and other crimes to emerge. Although the government was trying to look out for the best interest of Britain, it took a large toll on the country itself. Unemployment rates began to rise, impovrishing the streets of Britain.
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Although I agree that the black market is a crime of sorts, isn't it/ wasn't it something that was needed during the time. Yes you do have to question where the black marketeer got his goods, but it seems as though since it was needed so much because of the economy/ food situation, that it kind of balances out the bad thoughts about it. I don't know, just a thought.
ReplyDeleteYour entry was very informative, the highest tax rate was indeed very shocking!
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