Is War Beneficial to the Economy?

T/F - WWII brought the US out of the Great Depression???

Brainstorm 3 positive or negative economic effects of war (depending on your answer above)…

(1) Expert Groups:a. Read articleb. Answer article question in note formc. Make sure you ALL take notes and ALL

understand the article – you will all teach!

(2) Jigsaw Groups:a. New groups – one person from each expert

groupb. Each person has about 4 minutes to presentc. Everyone takes notes

1. Hazlitt Ch. 1: What are the two central errors of the “new” economists? What is the opposite possible error, often made by the classical economists?

2. Hazlitt Ch. 2: Explain the Broken Window fallacy.

3. McCloskey: According to McCloskey, is war good or bad for the economy? Cite 3 pieces of data to support your response.

4. Thomas Friedman: What is the Golden Arches Theory of Conflict Prevention?

5. Thomas Friedman: What is the Dell Theory of Conflict Prevention?

Conflict: Cost (Billions) Per Capita

The Revolution (1775-1783) 1.2 342.86War of 1812 (1812-1815) 0.7 92.11Mexican War (1846-1848) 1.1 52.13Civil War (1861-1865): Union 27.3 1,041.98

Confederate 17.1 2,111.11Spanish American War (1898) 6.3 84.45World War I (1917-1918) 196.5 1,911.47World War II (1941-1945) 2,091.3 15,655.17Korea (1950-1953) 263.9 1,739.62Vietnam (1964-1972) 346.7 1,692.04Gulf War (1990-1991) 61.1 235.00

(1) Is war beneficial to the economy?(2) How might we use the global economy to

avoid future conflicts?(3) What do you think of Friedman’s theories

of international conflict prevention – do you buy into his ideas?