Economic Downfalls Of War
War, and the economic profits it creates, is essential for today's modern economy. This is a popular view that many people believe to be true. People think that war provides a way of stabilizing a national economy. The view is utilitarian; it is cold and based on the argument that more people are helped by the economic effects of war than are hurt (Austin). This view of war is wrong. The economic costs produced by war outweigh the economic benefits that war, as an institution, creates.
Contrary to what many people believe war is quite harmful to national economy. Some might argue that it allows for the further development of new technologies, thus further pushing the economy. This is not necessarily true. War is good for the development of new technologies used in the military. A large amount of military funds are put into the development of new technologies that help in times of war, possibly making fighting safer and less costly in terms of life. After all, as Gustave de Molinari said, "The direct losses of war are those of life and capital (Morgan).'" So should the creation of such technologies be supported? Only if it has to. If the economy is dependent upon the institution of war then a less war dependent form of economy should be developed.
Although war is beneficial to the development of new technologies it is not so kind to other industries. When war strikes there is a shift in various elements of commerce, ranging from the value of a dollar to how much an ounce of plastic costs. Despite what is affected, these changes cause unexpected fluctuations in commerce that must be dealt with. These fluctuations can greatly harm an economy, forcing companies to pay twice as much for raw materials or forcing transportation businesses to pay more for fuel. War causes the use of resources to be less efficient, causing a loss of capital. This negative aspect of war is a double slap to the face, because this period of fluctuations in...
Please login to view the full essay...