by 35Kas » Sat 12 Apr 2008, 16:22:02
Broken window fallacy all over.
Spending money to "fix" broken things is not a boom to the economy, it is a drag, because all this does is re-allocate resources from improvement/discretionary spending, into maintenance. Same thing with war and disasters etc.
It may be a good thing for the weapons manufacturers or the repairman but whoever is paying for it is ALWAYS worse off because they "waste" resources that could have been used into something useful like better infrastructure or invest it into something promising. However a more accurate way of describing this is that wealth is transfered from people into the hands of the few and in the process wealth is destroyed.
Look at this example of wealth and production being represented simply by numbers in a year:
starting: 1000 +100/yr
disaster/war destroys: 200
Repair costs: 200
1000 - 200 -200 +100 = 700
Where wealth is tractors, houses, tools, factories, energy sources, agriculture, etc which is always increasing because we use energy from the sun which is effectively infinite and unused mineral resources buried in the ground.
Like Mr. Bill said, the world wars, but specially wars in general, are negative net producers. Resources/Energy that could have been used to make/create new/better things are diverted into producing weapons that have no intrinsic productive value (ie. a bomb is only useful to destroy) and end up destroying/damaging useful assets like people and infrastructure, like power plants, bridges, windmills, more efficient engines, etc.
In summary these things are all a big WASTE of resources/energy/people/time that could have been used much more productively in other things that would bring a positive net increase in quality of life, production, entertainment, efficiency, etc.