Sunday 23 December 2012

The economic foundation of a world war

The economic foundation of a world war

The ongoing welfare of the capitalism comes from the two World Wars which destroyed the accumulated capital stock, and thus brought back the profitability. The armament has played a similar role in the years following 1945. Wherever and whenever the full use of productive resources was achieved, it has been provided by the expansion of the state-induced "nonprofit" production. A section of this increase is a result of the measures of public welfare and foreign aid; most of it is the product of military expenditures. It is through inflation, debt accumulation, production stimulated by the State, preparation for war and the actual war, that the dominant capitalist nations were capable of approaching the full employment. In previous years, the economic fluctuations were accomplishing their duties of destroying the accumulated capital. But in the beginning of the 20th century, this has reached such a point that the fluctuations are no longer enough. It has been seen that the economic fluctuation has reached the end of the attribution of being a tool of accumulation, or, more precisely, the economic fluctuation has become a world-wars "FLUCTUATION". Consequently, we can say that in the actual course of the events, the current economic situation may set the stage for a new World War in order to bring a radical solution to the on-going problem and set the foundations of a new prolonged economic growth by restoring the falling profitability through the destruction of the production park.