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Brigid Hogan
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Brigid HoganSocial Butterfly
Asked: October 13, 20212021-10-13T14:19:37+01:00 2021-10-13T14:19:37+01:00In: Investment

Wars

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How do countries actually benefit from wars? Is it some sort of investment?

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    1. Rodrick Ocampo
      Rodrick Ocampo New You
      2021-10-15T19:32:28+01:00Added an answer on October 15, 2021 at 7:32 pm

      I wouldn’t say that war is beneficial to the economy of any country, well maybe for the cabals who sponsor the wars, but not the country at large. In fact, war is probably very negative. However, the fact is that you see an uptick in GDP during wartime because of the increase in government spending on things like bombs, bullets, and tanks. This increase in government spending will lead to an increase in overall GDP during wartime and a reversion to the trend after wartime.

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    2. Lemuel Box
      Lemuel Box New You
      2021-10-15T19:32:46+01:00Added an answer on October 15, 2021 at 7:32 pm

      Wars are expensive but good for the economy. But, in the short term they generate spending and put people to work. They give an immediate bump to the economy and then have long lasting negative effects like increased debt and long term liabilities in terms of things like health care and pensions. It would be much more efficient to use money spent on war for long term infrastructure than to make something that is blown up.

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