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