The Economics of War, Peace, and Human Well-being: A Critical Reassessment

The podcast trailer introduces a critical perspective on the conventional economic understanding of war and peace. It highlights the paradox that while war can stimulate economic growth, particularly through increased arms spending, this growth often comes at the severe cost of human well-being. The speaker argues that mainstream economics has historically neglected a deep consideration of the economic implications of conflict and peace, leading to a narrow focus on GDP without accounting for broader societal costs.

A central argument is the necessity for economists to move beyond "business as usual" economic policies. The current system, where arms production and destruction contribute to a larger economy, is critiqued for its detachment from human welfare. The trailer emphasizes that economic policies must be evaluated not just on monetary metrics but on their multi-dimensional impact on people's well-being, including how resources are allocated and the conditions attached to such allocations.

The discussion extends to the geopolitical and social consequences of economic policies, noting their influence on the balance of power between competing groups. These groups, often mobilized against each other, underscore the need for economic frameworks that consider social cohesion and conflict prevention. The ultimate goal of economic policy, as presented, should transcend mere financial transactions to actively foster and build durable peace, rather than inadvertently fueling conflict.

A significant challenge raised is the valuation of non-market goods, such as peace, biodiversity, and clean air. The trailer asserts that the absence of a market price does not diminish their immense value for human welfare. It concludes by repositioning human welfare as the fundamental objective of economics, advocating for a paradigm shift where economic thought and policy are intrinsically linked to the holistic well-being of humanity, moving beyond purely monetary measures.

war is a problem it's good for growth but it's not good for human well-being as a whole

most economists have not thought deeply about War and Peace

there is a compelling case for departures from business's usual Economic Policy

your econom is bigger if you're you're spending more money on arms even if those arms are being used to kill people and in the process the arms are being destroyed well then you have to spend more on more arms

we as economists need to actually think about how the policies we recommend impact on people's well-being in a multi-dimensional way

the goal is not merely to move the money but also building a durable peace

but how does one put a value on peace on biodiversity on clean air

just because something doesn't carry a price in the market doesn't mean it's not valuable

these things are not inconsequential for human welfare and at the end of the day human welfare is what economics should be about