"War ALWAYS Causes Recession" → Washingtons Blog
"War ALWAYS Causes Recession" - Washingtons Blog

Saturday, July 19, 2008

"War ALWAYS Causes Recession"

What do economists say about war?

To find out, I met with a PhD professor of economics, with a background in international conflict.

I told him that conventional wisdom holds that war is good for the economy; but that the war in Iraq seems to have destroyed America's economy.

He explained this seeming paradox:

"War always causes recession. Well, if it is a very short war, then it may stimulate the economy in the short-run. But if there is not a quick victory and it drags on, then wars always put the nation waging war into a recession and hurt its economy."
This contradicts all of the "war is good for the economy" propaganda we've all heard.

1 comment:

  1. Buy Warcraft(wow power leveling)please point machine to enter the website(wow power leveling)of Warcraft

    ReplyDelete

→ Thank you for contributing to the conversation by commenting. We try to read all of the comments (but don't always have the time).

→ If you write a long comment, please use paragraph breaks. Otherwise, no one will read it. Many people still won't read it, so shorter is usually better (but it's your choice).

→ The following types of comments will be deleted if we happen to see them:

-- Comments that criticize any class of people as a whole, especially when based on an attribute they don't have control over

-- Comments that explicitly call for violence

→ Because we do not read all of the comments, I am not responsible for any unlawful or distasteful comments.