War Economics

Countries divide into smaller countries and economies, different parties fight over elections from one term to the other, and others have their own sneaky ways of trying to get somewhere. In more extreme cases, a well-played strategy results in war. Here, I will discuss everything but politics, I shall at least try. I do realize that there is always a political reason or another for people to go to war which normally results in fatalities, but I do not believe that this is the only case here. Well, not entirely. People, even those who got almost no interest in politics; do understand that there are different gains in any war other than political ones. In the matter of fact, those gains might be the primary reason for a war to be undertaken once a cost-benefit analysis has been done, and approved of course. Let me trigger your thinking by a question: if we want to sell a product or a service and there is no significant demand for it, what do we do? We create a significant artificial demand for it. So now, “war, what is it good for?”

I would first want to introduce a few industries that are quite crucial here. The first one is the arms and weaponry industry, the industry of pharmaceuticals, oil mining companies, real estate developers, and finally the banking industry. Now, if the world was at complete peace; what will happen to our first industry? If people never got sick; what will happen to the second one? The remaining three industries are not as seasonal as the first two, if seasonal is the right word to use here. The second industry might be better off as rates of diabetes, cholesterol, and heart diseases are on continuous rise; but that’s not where the serious money is. The first rule here is that I need to sell one product to a mass population, the world population. In worse case scenarios, I will sell to 50% of them which is still a good approximate 3 billion of one product sold, making economies of scale fully effective. And to be able to sell; we create demand that wasn’t there for a product that wasn’t required in the first place, just like us as normal human beings, do not need war.

If I wanted to fight with someone, I will definitely find an excuse to do so. I might as well be aggressive and hit the person. The same goes for countries, though here not talking to someone means economic sanctions and a punch might go as far as a nuclear bomb. Now think about this, if we wanted peace to prevail, why do we have a whole industry of arms and weaponry? Politicians would argue that those are required for national sovereignty and defense purposes. To that, I got no objection. But how would these companies survive if they manufacture weapons to armies that do not use them? And so we come up with an excuse, similar to a lame one in break-up cases. We then go to war and use those rusty weapons before we order new ones. After that, pharmaceutical companies come into action by providing all required medical supplies. Once things have partially settled, oil mining companies expand their previously limited business and real estate companies sign development contracts, using funds provided by major banks.

When Israel went to its last war with Lebanon, it had to incur an expense of over 1 billion US Dollars daily. And now you might be able to relate to such a time when war could have been avoided. In many movies, many doubts were raised concerning major financial institutions and their role in escalating matters in conflict zones. The latter, as a business model, is not complicated to those who have been using it for centuries. To many of them, it might actually be a good solution to a current economic slowdown. Aren’t we already seeing a huge movement towards investing in Egypt? Actually, smart investors have already made their profits on stocks that they bought prior to the uprising in the land of Pharaohs. But don’t worry; there are more opportunities that you can grab before it’s too late, especially if you could start a real estate development company in a few months’ time. Since any investment in such an unethical business model is a cash cow, you are free to choose. There is nothing political about war, it’s all business.