The Lack of Major Wars May Be Hurting Economic Growth

[herzmeister]

The Lack of Major Wars May Be Hurting Economic Growth
 

It’s not because war spending itself is so good. It’s because the threat of war can inspire countries to do great things.

http://www.nytimes.com/2014/06/14/upshot/the-lack-of-major-wars-may-be-hurting-economic-growth.html


What an Orwellian "war is peace" rhetoric 

Also a classical Broken Window Fallacy  https://en.wikipedia.org/wiki/Broken_window_fallacy

And if war is what we need for inspiration, what a sad state of affairs the human mind is in.   

[sana8410]

War does not increase wealth, it transfers it to a few, with much attendant damage and destruction that diminishes the whole.

At one time it was inconceivable that economic growth could exist without slavery. So too with war and all other non-productive forms of economic activity. Given the cleverness with which men destroy each other there may be innovations with other applications, but on the whole the result is pain, misery, and deprivation for most.

[Nik1ab]

Spoken like a typical american.

[Charlie Prime]

These academics are paid by the Oligarchs to sit around writing up nonsense that justifies the continued rape of the working classes.

Tyler Cowen is a professor of economics at George Mason University in Virgina.



https://en.wikipedia.org/wiki/Tyler_Cowen


Ian Morris is a Brit working for Stanford in California.



https://en.wikipedia.org/wiki/Ian_Morris_%28historian%29


Although aggression is immoral, self-defense is not.  I would love to see some video of these academic toadies directly experiencing a bit of the "war" they are so fond of.  Armed men busting into their upper-class kitchens one Saturday morning and anally raping them while drinking their expensive coffee would somewhat repay them for their writings.

[noviapriani]

Basically, war gives the government an excuse for raising wages which is what leads to economic growth, at least in terms of rising living standards. Of course, the elites have to feel threatened enough or at least bribed enough to play along, at least for the duration. To be effective, the war has to require a fair bit of industrial production and large enough armies and long enough duration to have an impact on the workforce, which is why our most recent small scale wars have had little or negative impact.

[umair127]

To speak about war as beneficial to an economic situation is to defile all the victims that lose their lives, or their family members, their homes, their security, their safety.
Shame on the NYT for its constant warmongering ways.

[Rigon]

From the linked article:
“Rather, the very possibility of war focuses the attention of governments on getting some basic decisions right — whether investing in science or simply liberalizing the economy. Such focus ends up improving a nation’s longer-run prospects…War brings an urgency that governments otherwise fail to summon.”
Translation: We are stupid.

[Yakamoto]

Basically, war gives the government an excuse for raising wages which is what leads to economic growth, at least in terms of rising living standards. Of course, the elites have to feel threatened enough or at least bribed enough to play along, at least for the duration. To be effective, the war has to require a fair bit of industrial production and large enough armies and long enough duration to have an impact on the workforce, which is why our most recent small scale wars have had little or negative impact.

It doesn't give than excuse to raise wages, it just makes it so there's more jobs because you suddenly have to start producing everything that you can go blow up. As such, this may be less common due to the advent of automated construction of different things related to war.

It's the weapon producers who make the "money" from war, which pays those who own stocks in the company. Or you have to be employed under their name.

Some civilian jobs can make money from it too, however, as military surplus stores will get orders from or have the doomsday preppers come and buy up lots of their stuff.

Or you can go serve in the military

But war shouldn't be a necessity for economic growth. Start making more electronics or start popularising other things! That's how money is made in America...

[Charlie Prime]

WW2 was the exception

No.  You neglected to read the link above:  https://en.wikipedia.org/wiki/Broken_window_fallacy

[commandrix]

Ferengi Rule of Acquisition # 34: War is good for business.
Ferengi Rule of Acquisition # 35: Peace is good for business.

[Shattered]

Some great points made in this thread....if only more people could take a break from watching TV all day, and actually engage in conversations like these, we would all be better off.

[validium]

War does not increase wealth, it transfers it to a few, with much attendant damage and destruction that diminishes the whole.

At one time it was inconceivable that economic growth could exist without slavery. So too with war and all other non-productive forms of economic activity. Given the cleverness with which men destroy each other there may be innovations with other applications, but on the whole the result is pain, misery, and deprivation for most.

And those few bankers are the biggest earners. I think there are better ways to make money like innovation, science etc. And the guys that write this articles are full of sh**  

[Jamie_Boulder]

Basically, war gives the government an excuse for raising wages which is what leads to economic growth, at least in terms of rising living standards. Of course, the elites have to feel threatened enough or at least bribed enough to play along, at least for the duration. To be effective, the war has to require a fair bit of industrial production and large enough armies and long enough duration to have an impact on the workforce, which is why our most recent small scale wars have had little or negative impact.

Raising taxes*

[joshraban76]

I can't find how is this valid ?

It's, but only in creating super duper weapons to kill innocents.

What is the joy of wars ? To see Medal of Honor or Red Alert live on TV ?

[tinof]

That is because military complex is the only productive industry left in US.

[niothor]

Read the article twice and the opinions above and I don't understand how they can claim that a major war will help economic growth.

There is one thing a major war might help. Development in technology and the last ww2 showed that.
But the price is far too high for that and no sane people should think about this "solution".

[beetcoin]

the "defense" industry is large. republicans want to increase it to an even higher number, but i don't think that's going to happen any time soon. war is just a way of spending money, and when you can influence who wins the govt contracts, you make money that way. there are so many ways you can profit from war.

[zolace]

One important point of the article is that war is good for innovation. In war, people unite around common goals, and are willing to sacrifice in a way that is impossible in peacetime.

[sana8410]

One important point of the article is that war is good for innovation. In war, people unite around common goals, and are willing to sacrifice in a way that is impossible in peacetime.

One might attribute this to the willingness to abolish patents in wartime, like the American airplane industry was forced to do during the first world war. Since the state is the one concerned with fighting the war, and the state is the only actor effectively able to abolish patents (since the state is the one granting them in the first place), it is not odd that war is the only thing which can effect this change.
It has been argued that patents, as a whole, is a retardant to innovation. These historical facts seems to bear this argument out.
1) https://en.wikipedia.org/wiki/Wright_brothers_patent_war

[Ekaros]

War leads to investment in research, development and industry. That is how it improves economic growth... On other hand also, rebuilding increase economic growth...

Later one is wasteful, first one could be done. No one is suggesting that we bomb a few major cities and then rebuild those... That would be much more humane and cheaper anyway than a real war.