I was wondering this when I debated war with my brother who said, that at least war and tax money going to the us army is not wasted, since war is profitable.
But how is war profitable? The Iraq war cost 5 trillion dollars, which is more money than exists in the entire world. And the US military has an annual budget of 500 Billion, which is about switzerlands GPD.
So how can you possibly recuperate that much money? Because that is more money than oil could possibly be worth.
So how does the US military make its money back?
In: Economics
it depends on what you give value. Now a days, profitability in war is mostly political. Iraq was about presence in the middle east and oil.
War makes money for people involved in the war business. Not for every day Americans.
Back in the day war was profitable to the economy as a whole because people worked in munitions plants; building planes, jeeps, artillery shells, bombs, bullets etc.
Now, that is all done by private companies via direct contracts with the government, most of which is automated. No many jobs there.
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