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A Study on War Expenditures by Analyzing History of War - Focused on the two cases of U.S.A during the 1st and 2nd World War-

Park, Gye-ho 1,  kim yong bin 1

1단국대학교

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ABSTRACT

A war should be deterred in advance, but if deterrence fails, we must then win with victory. Thus, it is unavoidable to prepare for total war to win a complete victory. Unlike the past, there needs to take huge sum of war expenditures if a nation wants to grab a chance for victory in modern warfare. By analyzing two cases of U.S.A that had been conducted during the 1st and the 2nd World War, we are able to figure out that the governments had met the level of procurement by raising the tax rates, creating the new taxes, expanding the range of tax payers, and issuing War Bonds to secure the war expenditures. Recently, as U.S.A carry out GWOT in the two fronts of Iraq and Afghanistan, the governments have spent huge amounts of war cost than they expected, which caused terrible financial burdens to them. This study is to assess the war expenditures in Korean Peninsula for the possibile unpredictable war in the future and to prepare the procuring of war costs during the peace times. The government ministries which are in charge in planning and managing financial fields need to prepare the general guidelines for operating war and maintain the functions of government to stabilize people's living during the war time. To set those guidelines, the governments have to summon the related ministries and study, determine and verify its expenses in a specific time such as the period of UFG(Ulchi Freedom Guardian). Afterward, the governments should reflect the results of discussions on the ‘Chung-Moo Plan’ which is each ministries’ supporting plans being operated when the war break out in order to be revised flexibly and not to omit the essential parts. By applying the cases of U.S.A during the 1st and the 2nd World War as the good examples, the governments should study and set the guidelines in advance for execution of supporting plans of war in consideration of every options such as raising tax rates, expanding the range of tax payers, creating new taxes, raising the cost of issuing money, and issuing war bonds. As we are assessing the war expenditures, it should be minimized as far as possible because it will cost huge amounts of money to recover after a war. People's living, needless to say, would be worsen unless the governments minimize the assessment of war costs.

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