-War does not lead to prosperity, nations and humankind as a whole are overall poorer with wars. And this is glaringly obvious if you think a little.
If anyone wants to understand the economic implications of war, they must acknowledge what French economist Frederic Bastiat said long ago: "that both the consequences we can see as well as that which we cannot easily see must be fully taken into account."
Bastiat talked about the fallacy of broken widows. Suppose a war leads to broken windows on a tailor shop.
We can see that money was being spent on carpenters and glaziers so we might conclude that this was good for the local economy.
What we don't see is that money that had been saved for investing in new inventory and sewing equipment must now be diverted to window repairs.
Because of this, the tailor will not be more productive, nor more prosperous. The lesson is that he loses the value of the assets the war destroyed.
The other tailor in the next town whose windows were not broken, had saved a sum of his money and he invested in more modern inventory, and machinery, from sewing by hand now he has a sewing machine, and now he can produce 10 suits a weeks when only a few months ago he could only produce 1 suit a week.
The tailor whose windows were broken because of the war, could not compete anymore, however he saw the opportunity to start glazing business and he is now the local glazier in his village, for now the village needed 2 glaziers, one glazier could not handle the increase of broken windows.
Now every one is making more money,
The new glazier needs a truck/van to carry the Glass to the customers, He noticed that one of tyres needed to be replaced for it was starting to wear, he bought a new tyre to replace the worn tyre, the man who sold him the tyre advised the Glazier he should have his front end fixed and a wheel alignment would be a good idea.
When his car was due to be registered, the Government came in and send him a renewal registration certificate and a bill of $200 plus an advise notice that he could not register his car without a third party personal and property damage as the law stipulates in many European countries, that had been in a war.
And the story goes on and on.
Notice Jan how every one is making more money.
Jan think about if no windows are ever broken, where will the Glazier get their money from to survive.
Your broken window theory is a fallacy.
Jan if for some unknown reason all of sudden we can control every one in the USA and the USA will not have any crime, every one goes about there business all in peace no theft no murders no adultery, no drugs.
Jan within 12 month the USA will be bankrupt and so will China fall back to the days of poverty.
That is how 300 million people can control 1.5 billion Chinese by bot having to buy anything that was made in China.
The French economist Frederic Bastiat must gone to the same school as Aliroger1.
Jan we need wars and we need thieves and we need people that break the laws.