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destroying and rebuilding stuff is good for GDP in classical Keynesian economics and most others based on that, but there have been criticisms that this leaves
by bryanrasmussen 3y ago
destroying and rebuilding stuff is good for GDP in classical Keynesian economics and most others based on that, but there have been criticisms that this leaves out the obvious part that there must be a negative side of the ledger indicating destroyed resources.
- sambazi 3y agomaybe the maintenance costs lead to a kind of forced deprecation and hence war is not that "expensive" anymore
- bryanrasmussen 3y agosure from an accounting standpoint there must be depreciation of munitions, and battleships and all that stuff, but the ledger does not allow for destroyed and bombed out farmlands and so forth. I'm pretty sure if this had been pointed out to Keynes he would have agreed but probably noted that it was not as easy to calculate that part.