The economic benefits of war outweigh the costs. It appears undeniable that the business of war is lucrative; yet in response to the title of this essay, it is in my opinion that these economic benefits only apply to a minority and the overall economic costs far outweigh the benefits. It is impossible to look past the notable profits achieved by the technology and arms industries as merely coincidental with the surge of military activity in their respective countries. Putting aside the ethical debate surrounding the morality of war, this special relationship between the legislators and the industries evidently has a directly proportional effect.
The economic benefits of war outweigh the costs. It would seem that a The economic benefits of war outweigh conception has arisen throughout society that war bears no economic benefits, perhaps due to the recent scars of atrocities conducted in the World Wars, such as the Holocaust and the use of atomic bombs.
However, some may argue, I being one of them, that this is a serious misconception. Granted, war has many economic costs, this is inevitable; and will be born out of the destruction of land, labour and capital, but often it is overlooked that wars bring enormous mobilisation of resources, which regularly results in the development of new technologies and techniques that will benefit economically in the longer term.
If we consider the short-term, I think many would have grounds to argue that wars costs severely outweigh its benefits. However, I would argue that the economic costs of war are often short lived yet the benefits derived from conflict will last for decades, maybe even centuries to come.
But, do the long-term benefits outweigh the short-term costs? The first aspect of the economic impacts worth considering is the cost to capital stock of a country, and as A. Some countries, like the USA, never truly experienced war on their own lands, unless of course you consider the attack on Pearl Harbour, 7th Decemberwhereas others, like France, were occupied for the majority of the war by Nazi forces.
For countries like France and Poland, which were invaded on 1st September and 10th Mayrespectively, a major cost of war was the destruction of capital stock and of labour.
Large swathes of forestry and agricultural land, resources with a rich potential to make economic gains, were desolated by war machines. The Ardennes forest, for instance, covering roughly 11,km2, was mutilated by war, and it was this destruction of natural resources which left many without livelihoods prior to war.
In terms of labour, 1, of which were military dead, which is roughly approximately six million Polish citizens perished during World War II; only about one fifth of the pre-war population.
These colossal losses meant that in pre-war periods productive capacity was far lower, and thus potential growth of these countries was severely limited. This said, in France estimates of war dead are roughly , a figure unlikely to do too much damage to pre-war production rates.
However, if you compare Poland and France, two countries that were invaded during the war, with a country like the USA, the consequences of war are very different. The USA were the driving force of the Allied war effort, yet no civilians were killed directly by war, no land was ravaged by tanks and artillery and no towns or factories were flattened by bombers.
Of course, the USA encountered military losses roughly, but these losses were not enough to cripple pre-war production, especially considering the USA had a population of over , For the USA therefore, perhaps it could be argued there are far fewer economic costs of war, in this case, than for France and Poland, and this applies across many cases.
It must be said that these stats should be taken with a pinch of salt considering the USA was far more economically advanced than Korea by the s, but still it outlines the enormous difference in the economic performance of a country that is not directly afflicted by war, i.
Therefore, how large the economic cost of war is, in terms of destruction of land, labour and capital, will depend upon the nature of military activity of a nation; for some countries this economic cost of war will not apply, for others it will be one of the most significant costs of war.
All this said there are other economic costs, which often equally affect all countries involved in wars. These economic costs come in the form of damage to inflation, government finances and, of course, the balance of payments.
The liberal economist James Galbraith wrote in Inflation like this hits savings hard and can severely damage lover-class standard of living.
The issues with this kind of inflation are well beyond damaging savings, but instead render the currency totally worthless and effectively cause the collapse of economies. This said, hyperinflation of this nature is rarely encountered.
On the whole though it would seem that inflation is a major cost that is regularly encountered because of war. Often though the main economic cost of involvement in war is the total distortion of government financing, with spending on new infrastructure, technologies, munitions and war machines regularly creating substantial government deficits.When regarding the statement “the economic benefits of war outweigh the costs”, a key question worth asking is: are we thinking in the long or the short-term?
If we consider the short-term, I think many would have grounds to argue that wars costs severely outweigh its benefits. • economic growth and economic downturns (e.g., recession, depression) on a national and a global scale • economic development and inequality (e.g., access to water, food, education.
The economic benefits of war outweigh the costs. Discuss. The dominance of monetary policy over other forms of policy is now an accepted aspect of Modern macroeconomic management. Directions: To get you started on your essay, please begin brainstorming the benefits and costs of industrialization below.
Be sure to include more than the general points for either side. Consider the various documents we’ve studied in class thusfar and begin using these documents to support your case on either side.
The economic benefits of war outweigh the costs. Discuss. The dominance of monetary policy over other forms of policy is now an accepted aspect of Modern macroeconomic management.
Discuss. War is not without economic benefits, however.
These are not limited to having misfortune strike trade rivals. At certain historical times and places, war can stimulate a national economy in the short term.