Answered: is it possible to measure the true…

Social Science

History

is it possible to measure the true impact of war on an economy? If so, how?

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Question

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C. Thies and C. Baum wrote "While wars are destructive of physical and human capital, the impact of war on GDP per capita is unclear. This ambiguity is fundamentally due to the way national income accounting deals with killing people and destroying things during war. Producing weapons and munitions is counted positively, while killing people and destroying things is not counted at all. The cost of war is largely masked by national income accounting, which ignores the loss of lives and the destruction of physical and human capital associated with war."