In George Orwell’s 1984, the purpose of modern warfare is depicted as a means to consume human output without raising the general standard of living. This concept mirrors certain economic realities today, where war and conflict can lead to the destruction of infrastructure. While this destruction keeps people employed in the short term, it often results in a net loss for the general populace. The economy becomes trapped in a cycle of busy work rather than productive growth, leading to a stagnation or even a decline in living standards.
In the modern world, Keynesian economic policies and fiat money can sometimes create a similar dynamic. While these policies aim to stabilize the economy and maintain employment, they can also contribute to inflation, which ultimately raises costs and diminishes the purchasing power of consumers. This creates a situation where technology and productivity should theoretically make life cheaper and easier, but instead, inflation keeps the standard of living from improving as it should.
Ultimately, the interplay of war, economic policy, and technological progress underscores the complex relationship between productivity and human well-being. It’s a reminder that economic and political decisions have far-reaching consequences beyond just immediate gains. #Bitcoin fixes this.