2 ms·
War destroy capital. If you think of production in non-monetary terms, war is always a net negative.
by orwin 4y ago
War destroy capital. If you think of production in non-monetary terms, war is always a net negative.
- everybodyknows 4y ago> War destroy capital. It does. It also destroys cartels, rentiers, economic caste systems, captured government regulators and regressive tax regimes. This is one reason the US, Japan and Germany recovered so strongly after WW2.
- imtringued 4y agoDestruction of capital is good for capitalists. Scarcity of capital leads to higher yields and positive yields are necessary for the accumulation of capital. Of if the return on physical capital were to fall below the interest rate offered for money, capitalists destroy capital as it is too abundant. I have a hunch that this is what ultimately drives countries to war but it can't explain all wars. Primarily those following economic depressions. Yes, capitalists are insane.