Is Antitrust What You Think it is? / Prosperity in Wars: Part II


Prosperity in Wars

It has been said that the World War II was a time of great prosperity in the United States. Let’s analyze this statement.

Does war really stimulate the economy? If it really does, then why not start bombing every nation, I mean, can you imagine all the jobs we would create to rebuild every single city? Please forgive me my language, but can’t you see how stupid that sounds?

In World War II, forty percent of the labor force worked either in armed forces, were civilian employees of the armed forces, were employed in the military industry, or were unemployed. This means that forty percent of the labor force was not producing any consumer goods, and the other sixty percent had to pay the forty percent not to produce consumer goods. In the end result we have fewer goods being produced, and less money to buy the goods. Is that prosperity? I don’t think so.

Not only did that happen, but it was difficult to obtain adequate supplies of quality gas, rubber, meat, sugar, and many other products. It was impossible to purchase new homes, cars, or appliances. The quality of the product deteriorated thanks to price controls: fat was added to hamburgers, butterfat content of milk reduced, cornstarch was added to spices, coffee stretched with fillers, radical decline in clothing, from 1939-1943, nineteen out of twenty candy bars  were reduced in size. I can surely see how prosperous that time was.

War is like a big volcano exploding, or a huge tsunami destroying a whole city, or a massive earthquake eating half of New York, or a tornado destroying a bunch of houses. I mean, if you like all these things, you’ll definitely love war.


Video: The Broken Window Fallacy 

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