Friday, February 29, 2008

Happy Leap Year

Well since februrary 29th only comes around every four years I thought now would be a good time to recognize it.

To the idea that war creates economic stimulus, I have an alternative view as did the "great" queen elizabeth. Wars drain the resources/treasury of the govenment in order to replenish those resources the people must be taxed for the goods used. Therefore causing a greater financial burden on the economy and its people.

In the days of Queen Elizabeth (aka before the federal reserve) governments were not so able or willing to go into debt because it would eventually bankrupt the governement. The queen however was a famous figure in british history for her ability to realize it was of far greater advantage to her people to use diplomacy and trade to break barriers rather than using swords and muskets. Even though in some cases war is unpreventable Britain moved to the front as a world power because of the queens application of economic principles.

For those who might speculate that this no longer applies and that war acts as a stimulus in todays economy (aka federal reserve exists) Look what happened after WWI and WWII for comparison. After WWI countries were so beaten up that as they tried to rebuild there economy's they placed trade tariffs to increase revenues and encourage domestic production. Starting with the US-congress's Smoot-Hartley Act which back fired. As one country placed a tariff the other countries got even with a tariff of there own. The GDP of the world shrank month after month after 1931. While the Tariff's did not cause the depression alone they are a significant catalist.

But what about WWII? Did they save the world from the depression? Sure it put people back to work, and governments were spending again but wait what happened to the tariff issue? Congress realized what a horrible mistake they've made and reversed the tariff tightening. The trend that has continued through the 1980s. So was it the waste of resources and the destruction of people that boost economy's? Or was it a release on trade barriers and a humbled Federal Reserve that got things moving?

My last point is if war brought prosperity to waring nations then places like kenya, somolia, afganistan, iraq, etc would be the most prosperous country's in the world. Lets not be fooled to think wars bring something good to an economy. Trade, dipolomacy would bring better results for all parties involved.

While I recognize a need for war, I don't believe any country who goes looking for it can really be in favor with god. God bless those who serve with honor in our military for us, protect them and help there family's. God help those who lead us that they might do so in righteousness and faith.

A long blog I know but really you can't say this stuff isn't at least a little interesting.

1 comment:

Lorinda said...

This was rather intriguing, Mark. I saw some discussion tonight on 60minutes about tariffs on imports to "equal out" the playing field but you had some interesting historical insights on the subject.
How's that little Parker-boy doing? I saw a woman who is due the same time as Christy at a church meeting. It was fun to see how big she looked and imagine Christy. Love you both!