| abstract
| - The concept of a war economy was first alluded when Kazuhira Miller described its concept to Naked Snake in 1974. After the fall of MSF the use of Private Forces (PFs) became widespread in ethnic conflicts. Cipher saw this change in the industry as favorable since ongoing conflicts against an everlasting enemy allowed them to take attention away from themselves and redirect the public's animosity outside of their borders thus unifying them against their enemies. PFs also provided them with a source of income and by controlling the PFs they could create an environment of everlasting war and provide themselves with an infinite source of income as a result. Over time war became a permanent tool for manipulating the public mind and thus the "War Economy" was born. The war economy also resulted in increased levels of corruption in Military-based science due to an increase in the Research and Development race, which also resulted in (at least) some scientists doing some experiments without ever realizing the true damage they are doing. The term "war economy" was later used in 2014 by many analysts to describe the current time's overall situation: the total control of the battlefield brought by the SOP system had created an increased demand for war (becoming a product), and artificially controlling the intensity of warfare. Although the United Nations was unanimously in favor of the war economy, America did not desire to allow for the war economy to happen, but because of its over-exporting its military forces, as well as the backlash stemming from the Manhattan Incident, it was left with no other choice but to allow it to be voted into existence. In 2014, most of the PMCs belonged to Liquid Ocelot's major PMC mother company. As a result, various advertisements pertaining to the war economy, called battlefield ads, were supplied through various areas. Though the war economy provided conventional advantages on battlefields with the introduction of the SOP system, it also paved the way for illegal activity, where gun launderers (like Drebin 893) found loop holes in order to distribute their weapons, taking advantage of it and selling to PMC's, Paramilitary, state armies, and even terrorist groups, thus business was booming thanks to the high demands of war. According to Otacon's description to Old Snake, Drebin's rates were tied into the war economy due to the energy supply and distribution networks that support them (However, the Patriots had deliberately allowed Gun Launderers to exist, as Drebin mentioned that he was allowed to launder naked guns because they let him, and had absolutely nothing to do with his ties to AT Corp). It also resulted in the use of child soldiers becoming even more prevalent than before, as well as the creation of more refugees. According to Big Mama's description to Old Snake, the AIs (JD, AL, TR, TJ, and GW) were responsible for the creation of the war economy. Big Boss's description to Snake reveals that the war economy was a total deviation of Zero's will as the proxy-AIs' interpretation of a better way to accomplish their goals was war. They created the war economy and started a battlefield revolution similar to the industrial and digital revolutions that Big Boss describes as "a new world without ideology, principles, or ideals, not even the thing The Boss treasured the most: loyalty. It was a colossal error in judgment – one Zero couldn't possibly have foreseen." In actuality, it was the the complete antithesis of the future she had envisioned. In 2018, Raiden, when asked by Courtney Collins why AIs would form the war economy despite not having any apparent gain for it, pondered whether even the AIs themselves knew what they were doing. As a direct result of SOP's shutdown, the war economy waned to some extent. However, not all people were too happy with the "break" from it, a notable example being the Desperado Enforcement LLC. leader Sundowner, who felt that acting as a soldier for hire and warmonger was his livelihood. Ultimately, the war economy did end up rejuvenated due in large part to Steven Armstrong's orchestrating an attack on an American Air Base in Pakistan and making it seem as though Pakistan was responsible.
- A war economy is the set of contingencies undertaken by a modern state to mobilize its economy for war production. Philippe Le Billon describes a war economy as a "system of producing, mobilizing and allocating resources to sustain the violence." Some measures taken include the increasing of tax rates as well as the introduction of resource allocation programs. Needless to say, every country approaches the reconfiguration of its economy in a different way. Many states increase the degree of planning in their economies during wars; in many cases this extends to rationing, and in some cases to conscription for civil purposes, such as the Women's Land Army and Bevin Boys in the United Kingdom in World War II. Franklin D. Roosevelt said that if the Axis Powers win, then "we would have to convert ourselves permanently into a militaristic power on the basis of war economy." In what is known as total war, these economies are often seen as targets by many militaries. The Union blockade during the American Civil War is regarded as one of the first examples of this.[citation needed] Concerning the side of aggregate demand, this concept has been linked to the concept of "military Keynesianism", in which the government's military budget stabilizes business cycles and fluctuations and/or is used to fight recessions. On the supply side, it has been observed that wars sometimes have the effect of accelerating progress of technology to such an extent that an economy is greatly strengthened after the war, especially if it has avoided the war-related destruction. This was the case, for example, with the United States in World War I and World War II. Some economists (such as Seymour Melman) argue, however, that the wasteful nature of much of military spending eventually can hurt technological progress.
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