The Economic History of War and Conflict with Jari Eloranta
May 26, 2017
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Professor Jari Eloranta discusses the economic history of war and conflict, from pre-modern societies to the 20th century. Topics include military funding strategies, transitions in compensating soldiers, the evolution of warfare and state financing, the impact of wars on institutions, and the relationship between military spending and economic growth.
Pre-modern states used trade revenue, debt, and conquest to finance military, shaping early conflict dynamics.
French Revolution marked shift to total war, influencing warfare strategies towards mobilization and alliances in Europe.
Deep dives
Funding Military in Pre-Modern Societies
Pre-modern states financed military through tariffs, loans, or conquest, often relying on indirect revenue from trade. They utilized citizens for public debt and conquest to fund conflicts, leading to high stakes and consequences.
Transition to Total War: The French Revolution
The French Revolution marks a shift to total war in European history, with conflicts escalating in size and scope. The Napoleonic Wars involved large alliances, extensive naval battles, and propaganda, illustrating a shift in warfare strategies towards total mobilization.
Impact of Conflicts on Modern Institution Building
Scholars like Neil Ferguson highlight how wars shape modern institutions, such as central banking and taxation. Large-scale and long-duration conflicts have influenced the development of credit institutions and democratic structures, demonstrating the interconnectedness of warfare and institutional evolution.
Military Spending Comparison: Japan and Finland
Comparing military spending in Japan and Finland reveals the complex relationship between military expenditures and economic growth. While lower military spending did not directly lead to social spending increases, it did not serve as a significant driver of economic growth in both countries, highlighting the multifaceted impact of defense allocations on national economies.
My guest for this episode is Jari Eloranta, he is a professor of comparative economic and business history at Appalachian State University. Jari's work focuses on the economic history of national defense. In this far-reaching conversation, we go all the way back to pre-modern societies' methods of financing their militaries, then trace the transitions up through the early modern period and into the 20th century. We discuss the way war has shaped modern states and institutions.