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One of the many myths that muckle in the western society have is that Wars are healthy for the economy. There are a great number of nation who support this argument. The World War II came after the great(p) Depression. The building of Hitlers army led to the revival of German economy, as we discussed in our class.
The supporting argument goes as follows: read the economy is stagnant (as a stalled car) and needs a push. The unemployment grade are high. People do not purchase more than(prenominal) or produce more. Now, if the country decides to prepare for a war, the politics needs to equip its army with new uniforms, boots, helmets, artillery, trucks etc. and the individual industries flourish. This creates more jobs in these industries. People start to earn currency and spend this money to improve their standard of living by buying more. This gives a push to the retail sector and rough other related industries also flourish leading to a chemical chain reaction. More industries, higher incomes and higher spending. Overall the economy flourishes. However, on that point is a flaw in this logic, which the economists call The Broken window Fallacy.
The Broken Window Fallacy is brilliantly illustrated in enthalpy Hazlitts Economics in one lesson.
The example taken is of a vandal throwing a brick at a storekeepers window. Now, the shopkeeper has to buy grump from a looking glass shop by spending some money, say 250/-. So, the glass shop is making business. If windows were never broken what would happen to the glass business? Now the glazier has 250/- more to spend with other merchants and the chain continues. The obvious conclusion from this stratum is that the vandal who threw the brick was not a public menace but a public benefactor.
Our logic is correct in saying that the glass merchant benefits from the broken glass. However, we have not considered the possibility that if our shopkeeper had not spent the 250/- for the new glass he...If you want to go far a full essay, order it on our website: Orderessay
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