By Fanny Coulomb
Conflict frequently comes right down to something: funds. This e-book might be of curiosity not just to these focused on the burgeoning box of defence economics but in addition to these attracted to diplomacy and defence experiences.
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Extra resources for Economic Theories of Peace and War
Is a destruction of value which is of benefit to the productive force. The major part of a country’s consumption aims at the education of the new generation, the care of the future productive force. (1841: 247) The American politician Alexander Hamilton (1791) had already expressed principles similar to those defended by List. According to Hamilton, a solid economic base ensures a country’s security in the long run. He recommended the Union, at the level of which the prohibitive tariffs necessary to face the English and Dutch competition could be implemented.
They rejected the balance of trade theory, considering that the source of wealth is in agricultural production and not in the accumulation of precious metals. Defence was excluded from the field of work which is now known as ‘political economy’, in Montchrestien’s own words. However, even if defence issues are not mentioned in the physiocratic analysis, this omission is revealing in itself. Implicitly, peace is necessary to the physiocrat’s natural order. The economy therefore contributes to peace.
They can cause the downfall of the most economically advanced nations which subsequently lose their comparative advantage. In this presentation of war, List considers that it is never waged for justifiable objectives, and that it is often the result of a political constitution unfavourable to national economic progress. However, there is a positive side to war if it can help leaders to remember the importance for national economic security of having a strong national manufacturing industry. In this way, the United States benefited from war with England, because they had to abandon free trade and protect their manufacturing industries, which turned out to be favourable to the development of an economy whose agriculture had already developed well.