Why would the government bypass the free market in times of war?

Question

Why would the government bypass the free market in times of war?

Answer 1

Because in time of war resources may have to be reserved for things based on considerations other than economic efficiency.

Examples of this are wartime rationing and the wage and price controls implemented during World War II.

'No bid' contracts are something implemented by the government when there is not enough time for the formal bidding process.  One example of this is the 'non bid' contracts for emergency relief efforts after Hurricane Katrina.  The formal government bidding process can take as long as six months so it simply makes sense to offer a 'no bid' contract to a company with a proven track record in order to get things moving faster.

Answer 2

I don't know. maybe the buyers become international and they're in governments that aren't capitalist like the u.s. and the u.k.

Answer 3

simple, the people who would benefit are not those that have the biggest interests/power

Answer 4

I am making a huge assumption that you refer to "no bid" contracts? The only real reason to do this on such a long term scale is to provide financial gain for your cronies.

Answer 5

Because with the free market system,  the Bush administration  cannot use their positions of power to have personal gain from this war of choice  or have their pals make money from it.    They bankrupt the country with their war and then have the nerve to threaten a veto to a bill giving basic food and shelter to vets whose lives have been shattered by this war.