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this post was submitted on 16 Apr 2024
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The only way one can make money from a war is by selling weapons to others and not fighting it yourself. How can making explosives and throwing them away produce anything of value for their own economy?
Increasing the economy does not mean they make money, in this case it's rather that they spend money.
When the government pump money into weapons production and other military spending, that increases the economy immediately, then people get paid and buy other stuff.
In general government spending increases the economy.
But that money has to come from somewhere. Money printer go brrrr means massive inflation
It does. But that inflation doesn't hit instantly. Russia is banking they can weather this storm of their own making by draining their soverign wealth fund, emptying their Soviet stockpiles, and applying dizzying interest rates of 16%. These are short term boons that have very profound long term downsides for Russia.
That's pretty old school thinking.
As though your village only has so many carrots so giving everyone twice as much money means carrots will cost twice as much.
These days the thinking is, if everyone has a little money then more people will grow more carrots to sell.
The extra money floating around motivates people to produce value in order to win some of that cheddar.
Of course, this only works up to a point.
Ah yes I recognize this economic model.
No mate, check the Americans for a masterclass on making money from a war you start:
https://www.npr.org/2003/12/22/1559574/examining-halliburtons-sweetheart-deal-in-iraq