Saturday, July 19, 2008
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.