Is War Good For The Economy?: Dead Money

The video discusses the allocation of military spending, comparing it to social security budgets. It examines the economic impact of military spending, highlighting the broken window fallacy and suggesting more efficient fiscal stimulus methods. The necessity of maintaining a military for countries like the U.S. is acknowledged, while exploring alternatives for economic growth.

What portion of military spending is typically allocated to personnel wages?

• 3/4

• 1/4

• 1/3

• 1/2

How does military spending indirectly benefit the economy?

• By supporting companies and contractors who employ people

• By reducing taxes for citizens

• By increasing direct payments to military households

• By increasing exports

What is a common misconception about GDP growth during war periods?

• It leads to a decrease in inflation

• It reflects true economic prosperity

• It indicates a decrease in unemployment

• It shows an increase in exports

What is the broken window fallacy in economic terms?

• The notion that high taxes stimulate the economy

• The idea that destruction leads to economic growth

• The belief that saving money is harmful

• The concept that inflation is beneficial

In an ideal world, what is suggested as a more efficient way to stimulate the economy?

• Increasing military spending

• Reducing government intervention

• Applying fiscal stimulus in non-military sectors

• Raising taxes