1. Is War Beneficial to the Economy?

2.  T/F - WWII brought the US out of the Great Depression???  Brainstorm 3 positive or negative economic effects of war (depending on your answer above)…

3. (1) Expert Groups: a.Read article b.Answer article question in note form c.Make sure you ALL take notes and ALL understand the article – you will all teach! (2) Jigsaw Groups: a.New groups – one person from each expert group b.Each person has about 4 minutes to present c.Everyone takes notes

4. 1. Hazlitt Ch. 1: What are the two central errors of the “new” economists? What is the opposite possible error, often made by the classical economists? 2. Hazlitt Ch. 2: Explain the Broken Window fallacy. 3. McCloskey: According to McCloskey, is war good or bad for the economy? Cite 3 pieces of data to support your response. 4. Thomas Friedman: What is the Golden Arches Theory of Conflict Prevention? 5. Thomas Friedman: What is the Dell Theory of Conflict Prevention?

6. Conflict: Cost (Billions) Per Capita The Revolution (1775-1783)1.2 342.86 War of 1812 (1812-1815) 0.7 92.11 Mexican War (1846-1848)1.1 52.13 Civil War (1861-1865): Union 27.3 1,041.98 Confederate 17.1 2,111.11 Spanish American War (1898) 6.3 84.45 World War I (1917-1918) 196.5 1,911.47 World War II (1941-1945) 2,091.3 15,655.17 Korea (1950-1953) 263.9 1,739.62 Vietnam (1964-1972) 346.7 1,692.04 Gulf War (1990-1991) 61.1 235.00

10. (1) Is war beneficial to the economy? (2) How might we use the global economy to avoid future conflicts? (3) What do you think of Friedman’s theories of international conflict prevention – do you buy into his ideas?