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Is War Good For The Economy?

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Jip:
wars good for the economy if you win

if not then the economy is in the shitter

just ask germany, they know how to lose a war

virtuoso:

The economy is weakened by massive trade deficits
Weakened by it's massive over dependency on other nations
As for the choice of service sector jobs, the vast majority of service sector jobs are poorly paid, forcing people into a position where they have to take a service sector job is not choice. Also the reason why outsourcing is so cancerous, is that any jobs can suddenly be lost, you have a service sector, yet on the back of it, you have the very real danger of also those jobs being outsourced. However even more importantly, with the national debt as it is, output is vital to the economy, the more manufacturing is lost the less output and like I said, the less real value, i.e. less is being produced, more is being depended on from cheap imports.

TraceOneInfinite:

--- Quote from: virtuoso on July 08, 2007, 03:44:44 AM ---
The economy is weakened by massive trade deficits
Weakened by it's massive over dependency on other nations
As for the choice of service sector jobs, the vast majority of service sector jobs are poorly paid, forcing people into a position where they have to take a service sector job is not choice. Also the reason why outsourcing is so cancerous, is that any jobs can suddenly be lost, you have a service sector, yet on the back of it, you have the very real danger of also those jobs being outsourced. However even more importantly, with the national debt as it is, output is vital to the economy, the more manufacturing is lost the less output and like I said, the less real value, i.e. less is being produced, more is being depended on from cheap imports.

--- End quote ---

You can't assume that the service sector job will be worse than the previously held manufacturing job.  It could be equal or even better.  Also, a service job means that we are recieving more luxury and living at a higher standard.  I don't see why it makes such a difference whether an American manufacturing plant is placed in Iowa or in Indonesia, we will still get use of the products, and if it's in Indonesia then the products will be available at a cheaper price, which means people will have more money to spend on luxury items to increase their standard of living.

virtuoso:
No because the money being spent in the service sector is being spent courtesy of a plentiful money supply, courtesy of a dollar which has been massively devalued due to the mass outsourcing and thus trade deficit. That is not a greater standard of living it's a sleight of hand when people see all of this "money". Also you seem to miss an even bigger point, most people don't have this wealth, it has been borrowed, what do you think will happen when the creditors decide to pull the plug?

TraceOneInfinite:

--- Quote from: virtuoso on July 08, 2007, 06:06:01 AM ---
No because the money being spent in the service sector is being spent courtesy of a plentiful money supply, courtesy of a dollar which has been massively devalued due to the mass outsourcing and thus trade deficit. That is not a greater standard of living it's a sleight of hand when people see all of this "money".

--- End quote ---

Actually, the Federal Reserve could create even more money out of thin air and inject it into the system, and as long as the DEMAND for money is strong, then the economy will thrive.  It's about balancing the supply and demand in order to control inflation.  The economic problem takes place when people are insecure about their future, and so they start hoarding their wealth, and saving it in banks, and spending decreases; then you have a problem... and then the Fed will usually not be as likely to inject the economy with more money during those times.

Government intervention is actually what often damages the economy.  When they put so many regulations on businesses it damages their effectiveness and often they have to go oversea's to escape those handicaps placed on them by the government.

This is why I am not a Republican or a Liberal, but rather I support the Libertarian party in America.  Because liberal's want the government to solve all our problems, when in reality they are the problem, and they need to get out of our way.  And Republicans are war mongering Zionist who talk about small government but end up enhancing the size of government even more then Democrats (remember, it was actually Clinton that ran a surplus, while Bush on the other hand has been spending out of control). 

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