A War Economy Means Price Controls, Rationing, and Loss of Freedom

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Long before the beginning of the war in Ukraine I have been warning about the inevitability of global conflict between the East and the West, specifically in terms of the economic consequences that will arise should war break out. Of course, what you and I might see as consequences, others might see as an opportunity.

Without a doubt there is a contingent of power brokers within our society that would benefit greatly from such an event. Large scale wars, even when they are fought through regional proxy states (like Ukraine or Israel), lead to chaotic financial conditions that in turn lead to tighter government controls on everything.

During WWII the US spent over 40% of its GDP on defense; compare that to only 4% today. Americans in 2024 have no concept of the resource bottleneck that occurs during periods of large scale industrial warfare. I’m not talking about sending 100,000 troops along with naval contingent to fight low tech guerrillas in country like Afghanistan; I’m talking about 15 million troops or more (most of them drafted) and a massive scramble for resources on a scale not seen in a century. Very few people alive in the west today know what this means.

Consider for a moment the disaster that would befall the global supply chain. A large percentage of commodities and manufacturing come from the East and from the Middle East. American manufacturing has all but disappeared compared to the last world war. The amount of capital needed to revamp that kind of industry is immense. The time to train enough Americans for manufacturing work during wartime is considerable.

But beyond the lack of an industrial base to feed the vast military machine needed to sustain a global conflagration, there are a host of resource issues that no one thinks about. For example:

• Millions of young men being sent off to fight means far fewer potential workers across the board. Numerous sectors of the market would be desperate for skilled labor.
• Businesses dealing in vital resources and components will be pressured to forgo consumer markets and focus on government contracts in the name of national security.
• National spending would skyrocket creating more inflation, and this would be on top of supply shortages. Price controls would be the result, destroying all profit incentive and leading to many smaller businesses shutting down.
• It’s likely that most vital industries would be nationalized and managed by the government under the rationale that they might collapse otherwise. This would include agriculture (food).

Rationing would be pervasive, as it has been during every major war. The majority of goods would go to the war effort and consumers at home would be stuck with ration cards (digital versions) greatly limiting their ability to stockpile necessities for the future. Prepping would essentially die out at this point, except for those with access to black markets, and all preppers would have to shift into pure survival mode.

Rationing and price controls create a culture of government dependency, which is the last thing you want if you hope to keep your society free. Once a population is dependent on rations or some form of Universal Basic Income (UBI), the downhill slide into full tyranny begins.

The final stage of a long term war economy is usually resource confiscation. In other words, the government may try to implement imminent domain over land, crops, arms and even food stockpiles. This is not done because they necessarily need these goods. This is done to ensure that there’s no resources available that the public can use to rebel.

At this point, the only choice is to fight back or starve to death like peasants in a Soviet-style famine. This is why organization among patriots and preppers is so important – NEVER let yourself end up in a position where you have to give up your preps.

Currently, the war in Ukraine is balancing precariously on the edge of escalation. In the Middle East the powederkeg has already exploded (as I warned it would) between Israel and Lebanon, and it’s only a matter of time before a ground war with Iran erupts. The Biden Administration has clearly indicated that it will move to support Israel, especially if Iran enters the fray.

Meaning, world war has already started. There’s a reason why so many western government have been talking openly about conscription in the past year – They have been preparing the public mentally for a draft. There is no way the US, for example, would be able to fight across Lebanon, Syria and Iran without a draft. There is no way the EU and the US would be able to fight a war with Russia (or China) without a draft. It’s that simple.

By my observations there is a large percentage of American men who will not comply with conscription. There will be attempts to force them to do so. As we saw during the pandemic mandates, officials will try to create economic punishments for those that refuse to accept a draft. The government will try to prevent them from holding a job, deny them access to certain places, or even try to deny them ration cards.

The non-compliant will have to be self sufficient and prepared, and those who are prepared will be labeled treasonous. None of that matters.

Unless you actually believe that another world war is a noble and righteous endeavor, what matters most is that we have the ability to say no. And, the more resources we have at our disposal the easier it will be to say no. The insidious control that comes with multinational war is rooted in fear; fear of resource denial, fear of social ostracism and fear of legal repercussions.

Having the ability to rebel if necessary means having no fear. This all begins with a lifestyle of self sufficiency and community for mutual security.