How economics wins wars, with Duncan Weldon

In "The Economics Show," Soumaya Keynes interviews Duncan Weldon, author of "Blood and Treasure," about the economics of war throughout history. They discuss how warfare has shaped institutions like taxation and central banking, with the Bank of England as a specific example, and the mercantilist mindset that historically drove conflict. The conversation explores how the nature of war and its economic impact changed in the 20th century with total war, highlighting the importance of industrial capacity and economic flexibility, using Russia's collapse in World War I as a case study. They also examine the role of services, economic warfare tactics like embargoes and strategic bombing, and the challenges of preparing for future conflicts, including the importance of balancing defense spending and being aware of potential biases in military analysis. The discussion concludes with the idea that while GDP can't predict the winner of a war, a stronger economy provides resilience and the ability to sustain a longer conflict, emphasizing the need for a credible deterrent to prevent short-term losses.