Essay about Wars are Not Good for the Economy - 1846 Words

One of the more enduring myths in Western society is that wars are somehow good for the economy. Many people see a great deal of evidence to support this myth, after all World War II came directly after the Great Depression. This faulty belief stems from a misunderstanding of the economic way of thinking. The standard a war gives the economy a boost argument goes as follows: Lets suppose that the economy is in the low end of the business cycle, so were in a recession or just a period of low economic growth. The unemployment rate is high, people may be making less purchases than they were a year or two ago, and overall output is flat. But then the country decides to prepare for war! The government needs to equip its soldiers with†¦show more content†¦In it, Hazlitt gives the example of a vandal throwing a brick through a shopkeepers window. The shopkeeper will have to purchase a new window from a glass shop for a sum of money, say $250. A crowd of people who see the broken window decide that the broken window may have positive benefits: After all, if windows were never broken, what would happen to the glass business? Then, of course, the thing is endless. The glazier will have $250 more to spend with other merchants, and these in turn will have $250 to spend with still other merchants, and so ad infinitum. The smashed window will go on providing money and employment in ever-widening circles. The logical conclusion from all this would be ... that the little hoodlum who threw the brick, far from being a public menace, was a public benefactor. (p. 23 - Hazlitt) The crowd is correct in realizing that the local glass shop will benefit from this act of vandalism. They have not considered, however, what the shopkeeper would have spent the $250 on something else if he did not have to replace the window. He might have been saving that money for a new set of golf clubs, but since he has now spent the money, he cannot and the golf shop has lost a sale. He might have used the money to purchase new equipment for his business, or to take a vacation, or to purchase new clothing. So the glass stores gain is another storesShow MoreRelatedThe War Of The Revolutionary War1038 Words   |  5 Pagesat Yorktown, the revolutionary war was over, and the United States began the arduous task of rebuilding an economy held back by colonialism and destroyed by war. From the 1780s up until the 1810s, the economy was slowly growing and diversifying, the War of 1812 halted much of those advanced. The war ruined the United States economy once again, but it allowed it t o grow and develop to new heights and become stronger than before the war. After the revolutionary war, the United States began the arduousRead MoreTheu.s. 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