The Economics of War




Professor of Economics, Justin Wolfers, from the University of Michigan explores 'The Economics of War' in this video. It's around 10 mins long, asks deeper questions and is well worth a listen. He asks what causes wars in the first place, and suggests economics can offer an analytical way to view this.


Wolfers dives straight in and said we should have more concern when leaders start saying 'not to be concerned', or that 'a war will be short'! He evidences historial wars which suggest that when such things are said the complete opposite turns out to be true - referencing Korea, Vietnam, Iraq, and two deadly and protracted world wars. [NB Robert F. Kennedy Snr also dived into the sense behind war in his famous 1968 speech].


Wolfers refers to 'efficient bargaining', and its purpose in economics (nb an approach also used in counselling). He explains its use in minimising unnecessary levels of hurt/damage in achieving a final result. Howewer he raises the risk of over-confidence and the untold damage this can create. I see this and agree.


I also agree with the second option Wolfers refers to, one in my view far more dangerous and destructive:


  • Incentives, misaligned incentives, and power and economic systems (predominantly focused on the accumulation of wealth and money), with little to no regard for humanity or the planet!


In contrast to Wolfers' analysis, I believe this one is the most dangerous. Why?

  • Very simple - for me what we see is no accident.
  • All systems do exactly what are they designed to do - even if poorly designed.


To change what we see, we need to repurpose the system and introduce a more human-centric form of governance. Once repurposed, a system become "purposeful", leading to 'Purposeful Governance', which sits alongside a new and repurposed form of economics which we call 'Purposeful Economics'.


We are busy working on both the above, and discussing all of our work more widely.


e.g. we are setting up a forum to do this.


If you'd like to get involved get in touch.

This is the challenge of our time. One we now need to join together to build.



David Clift


Purposeful Ambassador®

Founder, Good Turns Foundation

Co-founder of Purposeful Britain and Purposeful World

 


 † Purposeful Governance™, Purposeful Economy™, Purposeful Economics™, Purposeful Britain™,  Purposeful World™, Purposeful Enterprises™, Purposeful Organisations™, Purposeful Boards™, Purposeful Policy™, Purposeful Leaders™, Purposeful Executives™, Purposeful Directors™, Purposeful Practitioners™, Purposeful Coaches™, Purposeful Education™, Purposeful Learning™, Purposeful Learners™, Gen P™, Purposeful Ambassadors™, Purposeful Citizens™, Purposeful Government™, Purposeful Storytelling™, Purposeful Storytellers™, Purposeful Story Sharing™, Purposeful Story Sharers™, Purposeful News™, Purposeful Journalists™, Gen C™, Gen V™, Gen R™, Gen S™, Gen A™, Gen W™, Purposeful Movement™, Purposeful Enterprise™, Purposeful Democracy™, Purpose Driven Government™, Purposeful Communities™, Purposeful Towns™, Purposeful Cities™, Purposeful Mayor™, Purposeful Wellbeing™,  Purposeful Council™, Purposeful Communities™, Purposeful Councillors™, Purposeful MP™, Purposeful Ministers™, Purposeful PM™, Purposeful Investors™,  Purposeful Advisors™, Purposeful Consultants™, Good Turns™, Good Points™ etc are all recognised/registered trademarks.



© 2026. David J. Clift.


Good Turns Foundation  [GTF12032026_01]