Quote:
Originally Posted by Aliantha
(Post 424109)
tw, I think you'll find most economists would refute that statement. In fact they'd suggest it's entirely on the contrary and that war fuels economy.
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Does it? The American economy prospered in the late 60s and early 70s from Nam. As a result, America sold off the world's third largest economy to pay for those post-Nam debts. Sold off a large American owned overseas industrial base. Massive debts - government and trade - were created by that war. Were you trying to get a job in the 1970s when things were so good because of Nam? That *prospering* resulted in recessions, downsizing, stagflation, a lower standard of living, loss of military strength, etc throughout the late 1970s.
Yes, some economists do confuse economic activity with productive growth. They view war as good for the economy just as it did good for pre-1800 France, Britain, and Spain. Same economists also saw sub-prime loans, lower interest rates, and SIV type accounting as only good for 2000 America using the same reasoning. A 'greed is good' mentality. Funny how those economists ignore what happens once the bills come due and all that economic activity has nothing profitable to show. Some economists also believe economic growth can be created by only throwing money at things. Again, they ignore the bigger picture.
If war is so good for an economy, then making a law that requires everyone to replace their front lawns annually would also create productive economic growth. Yes it does according to the principles advoated by some economists who confuse economic activity with growth; who also believe the Fed creates economic growth by only lowering interest rates. A smarter economist knows that war only destroys economic growth just as it also harms empires. Notice how UK spent so much on WWII - and therefore became the premier world power. Must be true if that is what some economists say?
War fuels inflation or stagflation, massive debt, the selling of a country's capital to pay for those debts, long term harm to the population (especially the 25% of veterans who end up homeless), and ... well why did their economic analysis for that year ignore the massive harm and debts that appear on spread sheets many years and a decade later?
Clearly there is no difference between growth and economic activity - according to many economists with the spread sheet mentality.
By ignoring a total picture, then war is good for an economy. Tell that to the major European powers who were so much more prosperous because of and after WWI. Tell that to the Athenians who expected to become wealthy by invading Syracuse. That war meant a demise of the Athenian economy as the major economic power. But according to most of your economists, that war only resulted in a stronger Athenian economy.
The Syracuse war did result in a better Athens because the resulting economic downturn caused Athens to appreciate that wars are destructive to economies AND to listen to nay-saying critics such as Socrates.
Only bean counter types view war as good for economies because those same spread sheets don't measure the resulting long term damage. Economies that prosper most from war are ones who don't fight and who supply the warriors. How many times repeatedly have I disputed that myth from some economists? And still that myth hangs on like a Rush Limbaugh proclamation. Do not confuse economic activity with positive growth.