kfl%mx.lcs.mit.edu@MC.LCS.MIT.EDU (07/29/86)
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Date: Thu, 17 Jul 86 00:58:23 EDT
From: "Keith F. Lynch" <KFL%MX.LCS.MIT.EDU@MC.LCS.MIT.EDU>
Subject: War productivity
To: DRW@AI.AI.MIT.EDU
cc: KIN%MX.LCS.MIT.EDU@MC.LCS.MIT.EDU
From: Dale Worley <DRW@AI.AI.MIT.EDU>
Tangentially, I find it amusing that military spending can rev up
the US economy, despite the fact that very little of the wasted
resources actually translate into improved political status or
anything. The idea of actual waste of resources improving the
economic situation seems counter-intuitive.
I think the only time that military spending improved the US economy
was when WW II pulled us out of the great depression. It does indeed
seem counterintuitive that something as wasteful as warfare can
improve the economy. It happened during WW II because the amount of
productive output that was being used up in war was dwarfed by the
increased utilization of manpower. Since a person doing no work of
course has zero productivity.
It has been suggested that the economy would run more smoothly if
surplus goods were to be purchased by the government and destroyed.
In fact, some are. It might indeed run more smoothly under some
definitions of smoothly. But there can be no arguing with the fact
that it leaves everyone poorer on the average, just as common sense
would lead you to believe.
One problem is that people's opinions of the state of the economy
are often formed less by statistics or personal finances than by
anecdote. A few steelworkers layed off after 30 years employment, and
a few bankrupt farmers, lead some to wonder if it isn't worth reducing
productivity growth to prevent dislocations like this.
Orwell's _1984_ and Heinlein's _Door_Into_Summer_ address these
issues.
Personally, I'm all in favor of letting the free market determine
these things, rather than allow coercion, or involuntary transfers of
wealth (which I regard as plain old theft).
Sometimes war is necessary. But I certainly hope none is ever
called simply to spruce up the economy.
...Keith
[ Might it be that the supercharging of wartime economy is caused by
the government injecting money it doesn't have (i.e. deficit spending)
or money from taxes into large, job-creating industries ( Coupled with
more government-created jobs (soldiery, among others)? - CWM]
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