NO.084 The meaning of war in the economy.The war is absolutely the opposite. I suggest a method that is not war. It is absolutely necessary to consider war for peace. Those who have experienced war agree with this. Consider the war for the sake of the economy., ・・・ Theme label: Lessons from war history: When the war is not stopped, everything ends.


Problem presentation. There is no doubt that war is the largest consumption. However, in economics there is no variable that kills people.
If it exists, I listen to the story.
In other words, there are ways for the economy to have the same economic effect as war, without killing people.

The meaning of war in the economy. ...
The war is absolutely the opposite. I suggest a method that is not war.

It is absolutely necessary to consider war for peace. Those who have experienced war agree with this. Consider the war for the sake of the economy.
I repeat about the macroeconomics mentioned in the previous article.

“The added value produced will be supplied and will eventually become someone's income.”

GDP = Gross National Income = Total Consumption + Total Investment

Total consumption is the sum of the value added of the price of the purchased consumables.
Total investment is the sum of the value added of the price of the purchased production material.

“How actively are the products produced by the industry purchased and paid for?”
This scale determines economic growth.

Products that are produced in the industry create value that did not exist at the raw material stage, and are added to the product.
Value added in economics is the price of this generated value out of the price of the product.

Consumables are products that are not used in industrial production, and production goods are products that are used in industrial production.
It is important for the economy that the product is purchased and paid for.
What happens after the product is purchased is not an issue in economics.
If it is food, it will not affect the economy whether it is eaten or discarded.

Looking at the GDP formula, whether it is a consumer product or a production agent, only the value-added price matters.
In other words, if a product produced as a production agent is discarded after being purchased, it is no different from a consumer product.

Thinking like this, war is massive consumption.
Once there is a city that you want to dismantle and rebuild, once, evacuate so that no one will die. After that, if you put military power and destroy the city thoroughly, this is a large-scale consumption.
For the economy, the city construction business has realized economic growth, and at that point, the role of the city is over.
Army weapon ammunition was also produced and sold to the government, so it finished its role for the economy, so it was all right to use it like any other consumer goods.

If the explanation ends here, it is simply a bad black joke. The important point is after this.

In Japan, city policies were systematically implemented in the same way as described above.

Japan's capital Edo during the Edo Shogunate era. In a city built only with wooden buildings, it was repeatedly destroyed by a large fire.
The Edo Shogunate developed a city that evacuated residents so that no one was killed.
And we created a system to quickly rebuild the lost areas.
The public works for reconstruction would have been the Keynes policy itself.

It seems that the Edo Shogunate intentionally improved Edo through a city plan with wooden structures.

So here is the purpose of this article.

We will do what we have just described in outer space. An important purpose exists.
At present, the danger of celestial collision with the earth is pointed out.

It is a problem related to the existence of humankind.

A celestial body that collides with the Earth will be completely destroyed or changed its orbit in outer space.

Public investment that invests all the financial power of all the nations on the planet into this project will become an economic policy that will rapidly grow the world economy.
Let governments issue government bonds of unprecedented size and buy them to the central bank.
Let the central bank issue a new currency and let the government pay it.

It is not a project that the budget allows to be implemented. Mankind will be destroyed by celestial collision if it doesn't make a financial investment to realize its purpose.


Finally, as an aside, the unmanned city army dismantling project mentioned above saves the hassle of evacuating residents by choosing uninhabited land from the beginning.

For example, suppose Greenland is purchased by the United States, Russia, or China, and a medium-range ballistic missile is deployed there.

Since no people live in the land where the medium-range ballistic missile is deployed, other countries can feel free to use the dismantling project.

This is an economic policy that avoids the Great Depression of the global economy.
So everyone in the power. Stop placing medium-range ballistic missiles in Greenland.


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