By Fanny Coulomb
Conflict frequently comes right down to something: funds. This e-book may be of curiosity not just to these eager about the burgeoning box of defence economics but additionally to these attracted to diplomacy and defence reports.
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Additional info for Economic Theories of Peace and War, 1st Edition
According to Hamilton, a solid economic base ensures a country’s security in the long run. He recommended the Union, at the level of which the prohibitive tariffs necessary to face the English and Dutch competition could be implemented. Besides, public support for arms production is essential. Military security is a condition of America’s industrial development, because it enables the country to free itself from its dependence on foreign powers. He suggests an import substitution policy, with the creation of a tariff to protect industries essential to national security.
However, these economists acknowledged that trade had some pacifying virtues and they were not, strictly speaking, ‘warmongering’. The German historical school wishes to initiate a new economic analytical method, based on the observation of facts. Gustav Schmoller (1902: 313) condemns both the liberal and Marxist theories, as ‘twin products of a non-historical rationalism, the last offsprings of the 18th century’s philosophy’. Like those of Whilhelm Roscher, his texts pay particular attention to war and national defence issues and to the promotion of national economic development, in opposition to the ‘cosmopolitanism’ of the classical school.
In fact, the historical method itself is contingent; it doesn’t provide universal economic principles itself. © 2004 Fanny Coulomb 2 The economy as a factor of peace The economy has become an autonomous discipline by excluding defence issues from the field of economic analysis. Indeed, the economic laws revealed are only valid in a context of laissez-faire and free trade. Wars disrupt the freemarket mechanisms. By reasoning in terms of pure and perfect competition, neo-classical economists finished separating the pure theory from the study of political and policy issues.