meehawl

all that is solid melts into air, all that is holy is profaned

War Economy

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All wars bring cheerful economic news at first. They stimulate production. They raise capacity utilization, which helps business cover costs and improve earnings … But the good news doesn’t last. Soon enough, profiteers see their chances. Bottlenecks happen. Prices go up. Long before unemployment disappears, wars generate inflation. Indeed, inflation and the depreciation of private wealth and public debt that it brings is the ages-old way in which governments pay for war.

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