How is this a negative thing related to war and economics.
most wars create zones of intense destruction of capital such as farms, factories, and cities. These effects severely depress economic output. ( I understand that bombs and other wartime activities wreck things but how would economics be involved)
When factories are bombed, they are useless and can't produce goods -- therefore there's no money coming in. Cities need to be rebuilt -- especially their infrastucture of roads, water supplies, and sewage removal. That costs a lot of money to repair these utilities. When farms are destroyed, the crops are ruined, so the people have to spend more money to buy their food from other places.
The negative impact of war on economics can be explained by looking at the interplay between destruction of capital and economic output.
1. Destruction of capital: In times of war, there is often extensive destruction of productive assets such as farms, factories, infrastructure, and cities. Bombs, artillery, and other forms of warfare can cause significant damage to physical structures and equipment. This destruction reduces the overall stock of capital in the economy.
2. Economic output: Capital, along with labor and technology, is one of the key factors of production. A reduction in the stock of capital hampers the ability of an economy to produce goods and services. Farms and factories that have been destroyed or damaged may not be able to function at full capacity or may need significant investments to rebuild.
3. Reduced productivity: The destruction of capital also leads to a decrease in productivity. Infrastructure like roads, bridges, and power facilities may be damaged, making it harder for businesses to transport goods, receive inputs, or access essential services. This can disrupt supply chains and hinder economic activity.
4. Displacement of labor: War often results in the displacement of people from their homes and disrupts the labor market. Workers may be forced to flee, become injured or killed, or be conscripted into military service. This reduces the available labor force and can further impede economic output.
5. Increased government spending: Wars require significant financial resources to support military operations, including the purchase of weapons, the mobilization of troops, and the provision of healthcare and welfare for veterans. Government spending on warfare diverts resources away from productive investments in other sectors, such as education, healthcare, infrastructure, and research and development.
Overall, the destruction of capital, reduced economic output, decreased productivity, labor displacement, and diversion of resources towards warfare all contribute to the negative impact of war on economics.