Politicians believe that natural disasters and war will help economic growth. They believe when these events happen a surge of employment, supplies, equipment, and increase capital will also materialize. When the United States goes to war, the need for gas, clothing, military supplies, food for the soldiers, etc. increases. The military buying these items will increase capital for each of the industries involved in suppling these products. The same happens when we experience a natural disaster. People buy extra food and preparation supplies before that natural disasters, which increases capital. After a natural disaster, people often have damage to houses, industries, or farms that needs repair. This will increase the capital of every individual that helps produce the …show more content…
This is a misconception made by politicians and the people in the United States. When we read Hazlitt’s “The Broken Glass”, it makes you look at the capital growth described above as redistributed and impermanent. When we look at the big picture, we do not know where the money would have been spent that was spent on the items for the war and natural disasters. When the natural disaster came and destroyed someone’s home, they may have been planning a vacation. The money that would have went to the airline, hotel, and restaurants will no longer be capital gain for those