Quote:
Originally Posted by
O'nus
lol - this is laughable. Seriously, war is an encouraging economical factor, you just refuse to see how. People react and buy things in response to emergencies, people buy things in response to wars, etc.
This again?
"...They tell us how much better off economically we all are in war than in peace. They see 'miracles of production' which it requires a war to achieve. And they see a world made prosperous by an enormous "accumulated" or "backed-up" demand. In Europe, after World War II, they joyously counted the houses, the whole cities that had been leveled to the ground, and that 'had to be replaced.' In America they counted the houses that could not be built during the war, the nylon stockings that could not be supplied, the worn-out automobiles and tires, the obsolescent radios and refrigerator...
...The more war destroys, the more it impoverished, the greater is the need...But need is not demand. Effective economics demand requires not merely need but corresponding purchasing power...
...The war, in short, changed the postwar direction of effort; it changed the balance of industries; it changed the structure of industry...
...Since World War II ended in Europe, there has been rapid and even spectacular 'economic growth' both in countries that were ravaged by war and those that were not. Some of the countries in which there was greatest destruction, such as Germany, have advanced more rapidly that others, such as France, in which there was much less. In part this was because West Germany followed sounder economic policies. In part it was because the desperate need to get back to normal housing and other living conditions stimulated increased efforts. But this does not mean that property destruction is an advantage to the person whose property has been destroyed. No man burns down his own house on the theory that the need to rebuild it will stimulate his energies...
...Many of the frequent fallacies in economics reasoning come from the propensity, especially marked today, to think in terms of an abstraction - the collectivity, the 'nation' - and to forget or ignore the individuals who make it up and give a meaning. No one could think that the destruction of war was an economic advantage who began by thinking first of all of the people whose property was destroyed...
...There may be, it is true, offsetting factors. Technological discoveries and advanced during a war may, for example, increase individual or national productivity at this point or that, and there may eventually be a net increase in overall productivity. Postwar demand will never reproduce the precise patterns of prewar demand. But such complications should not divert us from recognizing the basic truth that the wanton destruction of anything of real value is always a net loss, a misfortune, or a disaster, and whatever the offsetting considerations in a particular instance, can never be, on net balance, a boon or a blessing...
Chapter III: The Blessings of Destruction, Economics in One Lesson, Henry Hazlitt