Part 3 of our three-part series on economics and war, where we drill down into the various ways companies profiteer from war and how it stimulates the economy via “Military Keynesianism”. On the suggestion of my wise friend Tony Kynaston, we’re making this episode available to non-subscribers, because the subject we’re talking about is that important.
To summarise the last three episodes, here are some of the main ways war is good for business:
1. It’s good for companies selling weapons, both to their own country and to other countries, funded by tax dollars.
2. It’s good for companies selling other goods required during and after a war, including everything from food and clothing to reconstruction efforts – also funded by tax dollars.
3. It’s good for companies who want to gain access to undeveloped markets with new sources of natural resources and cheap labour.
4. It’s good for companies who want to lock up control of export markets that they can sell their goods and services to.
5. It’s good for companies who use war to get primary technological research done (and paid for by the taxpayers) that then makes its way into the hands of corporations.