InfoSearched
Published -
- April 9, 2020
- 3:35 pm
The Economy
1929 was the worst economic depression in modern history, it saw banks fail, soup lines, crippling unemployment and a decline in worldwide GDP by over 15% for context the 2008 mortgage crisis and the ensuing recession caused a drop in worldwide gdp of just 1%, so yeah this was bad, what I want to focus on for today is what put an end to the economic decline.
Students of history will probably say well this is so simple, it was World War 2, and this kind of makes sense… on paper.
What are the long-term economic consequences of wars, and why do they often outweigh the initial benefits of increased government spending?
The contention that war is good for the economy is not a new idea; instead, it has been a subject of discussion among scholars, politicians, and the general public for a long time. While some may argue that war stimulates economic growth and development, others maintain that there are far more negative economic consequences that accompany war. This article aims to explore both sides of the argument and offer a critical assessment of whether war is good for the economy.
One of the primary arguments in favor of war as an economic stimulant is that it creates a demand for goods and services. The war industry requires significant investment, which can result in job creation and an increase in GDP. For instance, during World War II, many countries involved in the war experienced massive economic growth due to increased government spending on weapons, vehicles, and other supplies needed to fuel the war. This increased government spending resulted in an increase in employment, which led to a decrease in unemployment rates and an overall boost of the economy.
Another apparent benefit of war is that it brings new technological advancements that can have a long-term impact on many industries. Historically, significant scientific discoveries and technological advancements have been made during times of war. Military research and development have led to breakthroughs in aerospace, communications, medicine, and many other fields. These developments also benefit the civilian sector by improving public transport, healthcare, and communication technologies.
However, there are several negative consequences of war that can significantly impact the economy in the long run. First, wars can result in significant destruction of infrastructure and loss of property, causing irreparable economic damage to the country. For example, the war in Syria has resulted in the destruction of thousands of homes, businesses, and public facilities, resulting in a severe economic downturn in the country.
Secondly, wars are extremely costly and require massive government spending; this often leads to significant debt, which can have damaging long-term effects. Governments usually must increase taxes to pay for the war, putting a significant burden on the taxpayers. The financial strain can slow down economic growth and reduce investment in other essential areas such as education or health care.
Finally, wars cause a significant loss of human lives, often resulting in a loss of a productive workforce. Families lose their loved ones, which can have long-term psychological effects that may hinder economic growth. The most affected people include children who lose their parents, wives who lose their husbands, and husbands who lose their wives. Such loss of breadwinners takes a significant toll on households’ finances and can create a long-term cycle of poverty.
In conclusion, while it is true that wars bring about economic growth initially, the long-term effects are often devastating. The negative consequences of war far outweigh the benefits in many cases. The loss of lives, the destruction of infrastructure, and high levels of debt saddled on the government are some of the long-term negative economic consequences of wars. Governments should invest in proactively resolving disputes to avoid wars instead of looking for short-term gains at the expense of their citizens.
