are wars good for the economy? How to know again?

bhaktajan

Hare Krishna Templar
What else to do with the surplus of deplorables? Ask the democrat administrations!
Is war bad for the economy?
Putting aside the very real human cost, war has also serious economic costs – loss of buildings, infrastructure, a decline in the working population, uncertainty, rise in debt and disruption to normal economic activity.

Increased military spending can generate some positive economic benefits through the creation of employment and additional economic growth as well as contributing to technological developments. This can provide a multiplier effect which then flows on to other industries.
www.economicsandpeace.org

What does war mean for the economy?

War economy is the organization of a country's production capacity and distribution during a time of conflict. A war economy must make substantial adjustments to its consumer production to accommodate defense production needs

Does war create money?
Surprising no one, the United States makes more money on war than any other country.
www.fastcompany.com

How does war affect economy?
Key findings of the report show that in most wars public debt, inflation, and tax rates increase, consumption and investment decrease, and military spending displaces more productive government investment in high-tech industries, education, or infrastructure—all of which severely affect long-term economic growth rates.


The Lack of Major Wars May Be Hurting Economic Growth
Jun 13, 2014 — It's not because war spending itself is so good. It's because the threat of war can inspire countries to do great things.
https://www.nytimes.com/2014/06/14/upshot/the-lack-of-major-wars-may-be-hurting-economic-growth.html

A war economy or wartime economy is the set of contingencies undertaken by a modern state to mobilize its economy for war production.

On the supply side, it has been observed that wars sometimes have the effect of accelerating technological progress to such an extent that an economy is greatly strengthened after the war, especially if it has avoided the war-related destruction.
https://en.wikipedia.org/wiki/War_economy

Further reading
Moeller, Susan. (1999). "Compassion Fatigue", Compassion Fatigue: How the Media Sells Disease, Famine, War and Death. New York & London: Routledge
 
Back
Top