Do Wars Cure Ailing Economies; M. Ahlseen

Unemployment, which stood at 14.6 percent in 1940,was reduced to 1.9percent by 1943.Howev er, the idea that war improves the economic wel fare of a people is a dangerous error. Advocates of the "war-is-good-for-the-econo my" doctrine surely must limit this to foreign con flicts. If a war is fought on domestic soil, the destruction of production facilities can only wors en the economic welfare of the citizenry. But can foreign wars help a domestic economy? Many people argue that increased government spending will put Americans to work and reduce, if not prevent, the effects of a recession. This, how ever, is nothing but Keynesian economic thought dressed in patriotic garb. It is the notion that increased government spending, on national defense in this case, will stimulate aggregate de mand and prevent an economic downturn. If reduced unemployment is the key, it is less ProfessorAhlseen teacheseconomicsat CedarvilleCol lege, Cedarville,Ohio.

costly,in terms of lives and resources, for the gov ernment to hire one group of unemployed work ers to dig holes and another to fill them. Few would argue that this would benefit the U.S. econ omy.It i~ not employment but productive employ ment that is beneficial. In fact, the true indicators of economic well-being are the lifestyles enjoyed by Americans, not their employment status. Included in these are the goods and services con sumed by Americans as well as the leisure time they enjoy. The crux of the matter is whether war produc tion can stimulate domestic production so as to improve the welfare of the general public. Ignor ing the possible benefits from an increased sense of security, war production creates no good or service for the civilian population to enjoy. In fact, real per capita Gross National Product (GNP), excluding defense spending, grew at a relatively slow rate in World War II-from $1,774 in 1940 to $1,866 in 1944 (these numbers are adjusted for inflation, using 1967 as the base year). By way of comparison, real per capita GNP, again excluding defense spending, was $1,124in 1932,$1,538in 1936,and $2,307in 1948.

World War II was no bonanza for the domestic economy. It is not my intention to debate the validity of American involvement in the Persian Gulf-that will be left to foreign policy experts. However, to suggest that a war can pull the United States out of a recession must be vigorously opposed. 0 133 Pigeons and Property Rights by Donald G. Smith I like pigeons. They are independent creatures who would survive whether I fed them or not, which is probably the reason that I feed them. This is why I was in the park on that bright autumn day. I was visiting some of myoid haunts in Los Angeles, and I never let a trip to myoid hometown pass without a few minutes on my per sonal park bench with a bag of bread crumbs, sur rounded by some of the most noble creatures on the planet. I was in the process of convincing myself that a fat charcoal-colored bird remembered me, when I was alerted to some activity at the other end of the park. I wandered down the path to see what was happening. It wasn't long until I discovered that it was a rally, and a rally in a public park usually means that a group of people who despise the idea of free enterprise have gathered to vent their anger. Run-of-the-mill establishment people aren't big for rallies and are not inclined toward marching either.