Journal 72: War and Economics

Economic disaster can be caused by war or it can be fixed by war. War is a very peculiar thing, makes some people poor as dirt and some people filthy rich. One example is the armsdealer. The armsdealer profit a lot during wars and especially the armsdealer that sell weapons to both side. Although unethical, they profit a lot during wars by selling to both side. Another party that gains a lot of profit from war is the winner. They make treaty that kills the loser's economy and military and in turns gets millions and billions of dollars from the treaty. However, as homewrecking and hellish wars might be, wars can save the economy during a recession and depression. What happens during a recession or depression is that people don't want to buy products and so production dies down and therefore workers are laid off. What happens during war is that government is forced to buy weapons, steel, tanks, and people are put to work for the war effort, therefore driving the economy back to working and growing. Although people die, economy will be brought back up because increase in government spending increasing aggregate demand will increase real GDP and therefore lowering unemployment.