Is war actually economically beneficial?
Think of war. It’s hard right? Our world has been largely peaceful since World War 2. The most you and I know of war is through movies and games like Air Force 1, Warthunder, or CSGO (my favorite being CSGO). The point here is that we do not know much about war today, and have not lived through an actual war and the transformations during and afterwards.
As such, I argue that people today largely have not experienced or understand how war is also a massive economic event that reshapes nations, industries, and lives. When countries go to war, they pour billions into weapons, technology, and manpower, creating a sudden surge in government spending. This can temporarily boost production and employment, but the long-term effects are often devastating. Economies become distorted as funds are diverted from education, healthcare, and infrastructure toward military purposes. Basically, economies become more inefficient the longer fighting continues.
Wartime economies favor military-related industries like arms, oil, and steel over civilian sections. In the short-run, there is economic activity and growth. However, since this activity is concentrated in wartime industries, it doesn’t help a country with development in the long-run. Additionally, during war, ordinary citizens often bear the brunt of this burden through higher taxes, rationing, and unstable job markets. After the war, nations face the challenge of rebuilding not only their cities but also their economies, often drowning in debt. For example, after World War II, Europe’s recovery required massive aid programs like the Marshall Plan to restore stability. South Korea, after the Korean War, was actually poorer than Nigeria. On the converse, countries like China were really poor post-war, but after they opened up to the world, they focused on low-cost manufacturing, which has been a strong engine of growth till today.
On a broader level, war can accelerate technological innovation. Things such as radar, the internet, and even GPS were born from military research. However, these advancements come at an immense human and financial cost, and is also a gamble because productive advancements in technology might not come everytime. It might be that we make stronger weapons for destruction every time. In essence, while war may stimulate parts of the economy in the short run, it leaves deep economic scars that take generations to heal. The true price of war is not just measured in money, but in the lost potential of what those resources could have built in peace.
