Siege Economy


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Siege Economy

An economy under such heavy government regulation that it cannot function properly. Examples of circumstances that may result in a siege economy include excessive taxes or laws that prevent growth. The appropriate amount of government intervention in an economy remains highly controversial.
References in periodicals archive ?
39) For the constituents they served, the improvisations of local bureaucrats ameliorated the worst effects of the siege economy.
Hennessy cites approvingly the experience of World War II, when Whitehall successfully drafted in squads of outsiders to help run a siege economy.
It was not until the 1960s that the government started to take measures which increased national prosperity by changing the country's economic system from a siege economy to an international trading one.