Junk science and junk economics

An outstanding article in the National Post by Pierre Lemieux [found via Mises Blog]:

'U.S. economy soars on war spending," ran a newspaper headline on Saturday. This suggests a little economic puzzle: Why can't we have the economic boost without the dead soldiers? Suppose the state called a war on, say, the ocean, took $80-billion worth of real resources -- steel, aluminum, trucks, airplanes and computers -- and sank them off the continental shelf. Why wouldn't this stimulate the economy?

According to John Maynard Keynes, it would.

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wouldn't that be called the

wouldn't that be called the Cold War in the 80's? ;-)

I ran across a parable on

I ran across a parable on this topic the other day.

(Also check out the flash animation on the site's homepage)

Mark, That was pretty good.

Mark,

That was pretty good. They never taught me that in school.

I had seen the flash animation before didn't realize it was from that site.