That war is not productive may seem self-evident to Misesians but it is not to the "educated" public who have been taught that World War II ended the Depression and that deficit spending (of whatever kind it doesn't matter) spurs economic growth. Americans show not the slightest awareness that every dollar spent on the ongoing Afghan and Iraqi wars, the continuing occupations, and the rebuilding of those failed societies is one less dollar that can be spent at home, and that the whole adventure represents a giant transfer of American capital to the sweltering deserts and sun-baked slums of the Middle East. If they were aware of these economic realities would they not be more skeptical about administration claims that the terror war is enhancing our security?
The Sinking of Capital
Thus it bears repeating that warfare, whether victorious or not, retards the accumulation of productive and livable capital. It does this either by destroying capital outright or sinking it in logistics and war production, thereby rendering it incapable of reproducing itself or adding to the complex infrastructure and amenities of civilization. During peace, capital is expended to sustain life, to provide comforts and entertainment, and to create new capital (houses, furniture, autos, machine tools, office building, factories, etc.). During war, capital is squandered building the implements of war and sustaining armies in the field. After the war, capital and labor must be expended in reconstruction and repair. War can give the appearance of prosperity (full employment, busy factories, high prices), but it is not real. During the War Between the States, "the mills, forges, and factories were active in working for the government, while the men who ate the grain and wore the clothing were active in destroying, and not in creating capital. This, to be sure, was war. It is what war means, but it cannot bring prosperity." So wrote Sumner.
The Sinking of Capital
Thus it bears repeating that warfare, whether victorious or not, retards the accumulation of productive and livable capital. It does this either by destroying capital outright or sinking it in logistics and war production, thereby rendering it incapable of reproducing itself or adding to the complex infrastructure and amenities of civilization. During peace, capital is expended to sustain life, to provide comforts and entertainment, and to create new capital (houses, furniture, autos, machine tools, office building, factories, etc.). During war, capital is squandered building the implements of war and sustaining armies in the field. After the war, capital and labor must be expended in reconstruction and repair. War can give the appearance of prosperity (full employment, busy factories, high prices), but it is not real. During the War Between the States, "the mills, forges, and factories were active in working for the government, while the men who ate the grain and wore the clothing were active in destroying, and not in creating capital. This, to be sure, was war. It is what war means, but it cannot bring prosperity." So wrote Sumner.

