War economy applications in Turkey during the Second World War years

The idea of all-out war, which became evident during the World War I, culminated in countries concentrating on the battle with all their tangible and intangible assets. The state of the current economic policy became impotent in the fight against serious economic difficulties by the time of the modern war. The fact that the current economic policies left the States desperate led to the emergence of the concept of a "warfare economy" in Turkey, as well as in all other countries over the World. In Turkey, warfare economy was implemented during the World War I, the War of Independence and in a more active way during the years of the World War II. Turkey managed not to enter the World War II; however, it was seriously affected by the severe economical consequences of the war. Practices of warfare economy were unavoidable when combined with increasing military costs, growing food problems due to reduced production inability to meet demand, price inflation, stockholding and vigilance, and systemic inadequacies. As a result, all economic development moves that started with the Izmir Economic Congress were suspended. The legal basis of the war economy practices in the Saraçoğlu period was the National Security Law prepared in the Saydam period, and was used with the significant adjustments. Another practice remained active throughout the Saydam period was rationing system, which was implemented to ensure that some basic foodstuffs, particularly bread, reach the public. In addition, the Wealth Tax, collected from the rich people, and the Soil Crops Tax, which was placed into disproportionate agricultural earnings, played a major role in closing the budget deficits; however, in terms of the methods of implementation, they disturbed some circles, so the taxes were harshly criticized. The other two taxes that made a significant contribution to the financing of the war during the Saraçoğlu period were Road Tax and Animal Tax. In this context, the most important aim of this study is to discuss in cause-effect relation the importance of the war economy practices suffered by the poor, and to analyze the economic problems within the circumstances of the time.