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Are wars good or bad for the economy?


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2014 Nov 7, 12:17am   1,113 views  2 comments

by darlag   ➕follow (1)   💰tip   ignore  

It is common for economists to offer a forecast for the stock market yet add a caveat to the effect that “If a war shock or terrorist attack occurs, then I would have to modify my outlook.”

For such statements to have any validity, there must be a relationship between war, peace and terrorist attacks on the one hand and the stock market on the other. Surely, since economists say these things, we can assume that they must have access to a study showing that such events affect the stock market, right?

This analysis sees no correlation between the stock markets and wars...

http://www.globaldeflationnews.com/dont-get-ruined-by-these-10-popular-investment-myths-part-vian-educational-series-from-elliott-wave-international/

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1   Tenpoundbass   2014 Nov 7, 12:37am  

Today they are bad for the little guy and great for the big guy, but they didn't used to be.

Today everything is done by no bid contracts, before the black markets were just as big as the legit markets. Which were full of entrepreneurs as well as power elite titans. Wars used to spread the wealth, provided you weren't on the losing side.

Today isn't just a big wealth suck from the poor and the middle class into the largest companies in the world. The work is either automated, outsourced, or filled with cheap labor with employment compliance, that makes it hard for companies to even give them more than a 20 work week.

2   Mick Russom   2014 Nov 7, 1:02am  

The problem was how to keep the wheels of industry turning without increasing the real wealth of the world.
Goods must be produced, but they need not be distributed. And in practice the only way of achieving this was by continuous warfare.

War, it will be seen, accomplishes the necessary destruction, but accomplishes it in a psychologically acceptable way. In principle it would be quite simple to waste the surplus labour of the world by building temples and pyramids, by digging holes and filling them up again, or even by producing vast quantities of goods and then setting fire to them. But this would provide only the economic and not the emotional basis for a hierarchical society. What is concerned here is not the morale of masses, whose attitude is unimportant so long as they are kept steadily at work, but the morale of the Party itself. Even the humblest Party member is expected to be competent, industrious, and even intelligent within narrow limits, but it is also necessary that he should be a credulous and ignorant fanatic whose prevailing moods are fear, hatred, adulation, and orgiastic triumph. In other words it is necessary that he should have the mentality appropriate to a state of war. It does not matter whether the war is actually happening, and, since no decisive victory is possible, it does not matter whether the war is going well or badly. All that is needed is that a state of war should exist. The splitting of the intelligence which the Party requires of its members, and which is more easily achieved in an atmosphere of war, is now almost universal, but the higher up the ranks one goes, the more marked it becomes. It is precisely in the Inner Party that war hysteria and hatred of the enemy are strongest. In his capacity as an administrator, it is often necessary for a member of the Inner Party to know that this or that item of war news is untruthful, and he may often be aware that the entire war is spurious and is either not happening or is being waged for purposes quite other than the declared ones: but such knowledge is easily neutralized by the technique of doublethink. Meanwhile no Inner Party member wavers for an instant in his mystical belief that the war is real, and that it is bound to end victoriously, with Oceania the undisputed master of the entire world. All members of the Inner Party believe in this coming conquest as an article of faith. It is to be achieved either by gradually acquiring more and more territory and so building up an overwhelming preponderance of power, or by the discovery of some new and unanswerable weapon. The search for new weapons continues unceasingly, and is one of the very few remaining activities in which the inventive or speculative type of mind can find any outlet. In Oceania at the present day, Science, in the old sense, has almost ceased to exist. In Newspeak there is no word for " Science ". The empirical method of thought, on which all the scientific achievements of the past were founded, is opposed to the most fundamental principles of Ingsoc. And even technological progress only happens when its products can in some way be used for the diminution of human liberty. In all the useful arts the world is either standing still or going backwards. The fields are cultivated with horse-ploughs while books are written by machinery. But in matters of vital importance - meaning, in effect, war and police espionage - the empirical approach is still encouraged, or at least tolerated. - George Orwell, 1984

The new aristocracy was made up for the most part of bureaucrats, scientists, technicians, trade-union organizers, publicity experts, sociologists, teachers, journalists, and professional politicians. These people, whose origins lay in the salaried middle class and the upper grades of the working class, had been shaped and brought together by the barren world of monopoly industry and centralized government. As compared with their opposite numbers in past ages, they were less avaricious, less tempted by luxury, hungrier for pure power, and, above all, more conscious of what they were doing and more intent on crushing opposition. - George Orwell, 1984

The alteration of the past is necessary for two reasons, one of which is subsidiary and, so to speak, precautionary. The subsidiary reason is that the Party member, like the proletarian, tolerates present-day conditions partly because he has no standards of comparison. He must be cut off from the past, just as he must be cut off from foreign countries, because it is necessary for him to believe that he is better off than his ancestors and that the average level of material comfort is constantly rising. But by far the more important reason for the readjustment of the past is the need to safeguard the infallibility of the Party. It is not merely that speeches, statistics, and records of every kind must be constantly brought up to date in order to show that the predictions of the Party were in all cases right. It is also that no change in doctrine or in political alignment can ever be admitted. For to change one's mind, or even one's policy, is a confession of weakness. If, for example, Eurasia or Eastasia (whichever it may be) is the enemy today, then that country must always have been the enemy. And if the facts say otherwise then the facts must be altered. Thus history is continuously rewritten. This day-to-day falsification of the past, carried out by the Ministry of Truth, is as necessary to the stability of the regime as the work of repression and espionage carried out by the Ministry of Love. [The Ministry of Love's charter is to enforce loyalty and love of Big Brother through fear, torture, and brainwashing] - George Orwell, 1984

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