Do you think economies are more likely to grow during wartime or peacetime?

Question

Do you think economies are more likely to grow during wartime or peacetime?

Answer 1

War usually results in massive government spending usually financed through borrowing from the citizenry (or abroad).  Provided the war is not on domestic soil, this effect often leads to a temporary increase in GDP.  Eventually the money has to be repaid, so it is just like borrowing by using a credit card - you have more stuff today but you have to pay it off eventually.  However military action also has the potential to secure resources and stabilize trade partner's regions.  An example is the first Iraq war and the US ties with Saudi Arabia.

Answer 2

It depends on how well the war goes.  When the war doesn't go well, then sometimes there isn't much left of the economy at the end of the war.

That's what happened with the Japanese economy at the end of the second world war.  And if ever there is going to be a nuclear war between USA and some other country.  Then the US economy probably would shrink a lot too.