Economics of War

Informative video from CNBC which looks at the economics of war. A lot of economic concepts used and some of the main points below:

• Countries are investing in their armed  forces again, with military expenditure reaching a peak of $2.4 trillion in 2023,  the highest year-on-year rise since 2009.

• The production possibility curve illustrates how producing more guns means making less butter, and vice versa. A massive trade-off when you consider just how expensive war is.

• One Javelin anti-tank  missile costs about $178,000. Since 2020, at least 10,000 of these  missiles have sent to Ukraine by the U.S. alone – an expense of at least $1.7 billion.

• The UN Office for the Coordination of  Humanitarian Affairs estimated in 2018 that the total economic cost of conflict and  violence in the world reached $14.3 trillion, or 12.6% of global GDP. This figure rose to $17.5 trillion in 2022, or more than 17% of GDP.

• The Russian economy should grow by GDP 3.2% in 2024 with the invasion of the Ukraine.