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How does war effect economy?

asked
User Technik
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7.6k points

1 Answer

6 votes
Economic benefits of wars
Just briefly war can have potential economic benefits.
Full employment
Higher economic growth
Increased rate of innovation as the government invests in new technology, e.g. development of radar/jet engine in Second World War could be used for peaceful purposes.
Change in social attitudes. For example, women entering labour market after First World war.

Economic loss of war
inflation
National debt
answered
User Chenzhongpu
by
8.2k points

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