Can you please explain these last two things for me. Thank You
One way governments pay for war is to raise taxes (which in turn reduces civilian spending and investment). What does the part in the brackets mean?
Most wars create zones of intense destruction of capital such as farms, factories, and cities
1. When people's taxes are raised, they have less money to spend on other things, such as rent/mortgage, groceries, gasoline, entertainment ... also less money to invest in businesses, either their own or in the stock market, money markets, retirement funds, etc.
2. Bombs and other wartime activities wreck things -- whatever gets in their way.
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