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Is war good for the economy?

Economics Explained

00:00

The Broken Window Fallacy

The military does need equipment and everything else to remain operational, but it still has a primary purpose of being an army. These jobs do not produce consumer goods or capital goods that can then in turn be used to produce consumer goods. In a perfect world where we did not need armed forces to defend our nations, there are much more efficient ways of applying fiscal stimulus.

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