Again on defense industry super-profits
One of the main sources of the thesis that "a major war unconditionally brings super-profits to the defense sector" is a distorted perception of the World Wars and other conflicts of the past century, especially through the lens of outdated ideological frameworks.
Although a cursory search shows that for the same British military industry, both World Wars ended not with super-profits, but with a wave of bankruptcies and debts. And even the far more successful example of the USA has its own nuances.
📌 In WWI, their companies were flooded with orders, but they were largely paid for through American credits to Entente countries. Which the USA itself subsequently had to pay off — the borrowers simply had no means to do so after victory.
And in WWII, the super-profits of the American defense industry were paid for by a record (at that time) increase in its own national debt, the size of which was enough even for payments for lend-lease production, largely free for recipients.
❗️So when a country has its own major war, the defense industry can receive super-profits, but only if that country's economy allows it to conduct military operations without radically cutting other sectors and accumulating a critical mass of debt.
And when searching for super-profits of the defense industry of a state de facto at war, one can check whether it meets the criteria described above. The answer can save a lot of time.
#industry #Russia #USA #economy
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