Guadalcanal

Guadalcanal

Friday, January 31, 2014

Response to war benefiting the Economy yes or no?

War has one major benefit (other than fighting off terrorists or stopping a ruthless tyrant, 'merica) it can help stimulate the economy. With the government needing to prepare the military for war with gear and munitions jobs are created. Not only for the military but jobs that cover reservists for private sectors are created. Then with all of these employees that aren't worried about losing their jobs they spend extra money than they normally do, so then the retail part of the economy boosts, thus making even more jobs! Just from the government preparing for war.

The jobs that are created from war eventually do go away and people will get laid off, because we don't need supplies for war after the war is over, which means our economic boost is done, and we slow back down and the economy slowly goes into a recession again until we get another boost from war again. So war does benefit the economy, but when it's over it's not benefiting the economy anymore, it's just how it always is. It's a never ending cycle until we can figure out how to create more jobs (in a never ending phase until we have jobs for everyone) our economy will always be bad until we get a boost. There is also another way we could look at it as the Broken window fallacy, which explains that when we go to war, it does not benefit the economy, because the excess money that will be spent on war will not be spent. This link states, "war can be funded in a combination of three different ways: Increasing taxes, decrease spending in other areas, or increasing the debt." You can look at it both ways and decide how you feel about it.

In my opinion, war itself is inevitable, due to the human nature of being destructive and violent. There will always be a war no matter how you look at it. We could have world peace and have a war with a different planet (in some sort of sense that life on other planets could declare war with earth at any given time, because the possibility of that happening is slight, but it's still possible) so, basically in a never ending nutshell, at one point or another we will go to war and the fact is that jobs will be created and boost the economy just like it always does. 

2 comments:

  1. That's an interesting way to think about it. I agree that eventually war will break out no matter who or where you are, but I didn't know war actually boosted the economy. I did know that jobs opened up, but as far as i knew war desecrated the economy because the government spent all its money on equipment. It's something worth knowing i suppose.

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  2. I like your opinion Tyler, gave me a different view about war. We all like seeing how you feel about something your passionate about. Hopefully we can see more. C.D.

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