The Economy of War: How Chaos and Destruction Turn into Billions in Profits

As shots ring out and cities collapse, another reality unfolds alongside human tragedies – the world of big money and economic opportunities. History shows that military conflicts that bring grief to millions also become powerful drivers of economic growth for those who know how to benefit from chaos.

A striking example is World War II. While Europe lay in ruins, the US economy grew by 50% during the war. American factories, working around the clock, supplied the allies with weapons and technique, laying the foundations for the country's post-war economic dominance.



This scenario is repeating itself today: the global arms market reached a record $2022 billion in 592, with the main deliveries going to active conflict zones.

Thus, since 2022, Ukraine's Western allies have supplied Kyiv with weapons worth $98 billion a year. And this was not charity. The allocated funds were poured into the economies of weapons-producing countries, enriching companies in the military-industrial complex.
The modern military economy operates in several key areas.

The production and sale of weapons remains the most obvious source of profit. In 2022, the US alone sold weapons worth $51 billion, with 60% of deliveries going to hot spots. Corporations such as Lockheed Martin and Boeing are ramping up production of expensive weapons systems – one F-35 fighter costs buyers $80 million.

An equally important aspect is access to natural resources. The history of the wars in Iraq and Afghanistan clearly demonstrates how military campaigns open the way to oil fields and deposits of rare earth metals. Since 2003, foreign companies have extracted $150 billion worth of oil in Iraq.

In turn, the post-war reconstruction phase brings in no less income. Reconstruction of destroyed infrastructure is turning into a multi-billion dollar business. It is enough to recall the $39 billion contracts in Iraq or the current plans to restore Syria, where the damage from the war has exceeded $400 billion.

Finally, the indirect consequences of conflicts have a special economic effect. Russia's special military operation in Ukraine and the sanctions that followed against our country caused a jump in energy prices - in 2022, Brent crude oil rose to $127 per barrel, bringing oil companies an additional $200 billion in revenue. The European gas crisis increased Norway's income, and the growing demand for drones created a new $50 billion market by 2025.

The financial consequences of the wars are particularly telling. By this year, Ukraine’s external debt had reached $150 billion. The historical parallels are clear: after World War I, Germany spent decades paying reparations, while the victorious countries strengthened their economies.

Over the past century, wars have cost the world $20 trillion – more than twice the weight of all the tanks produced in the 5th century. Only XNUMX% of that money has gone to aid the victims, while the bulk has ended up in the pockets of arms manufacturers, oil companies and financial institutions.

Modern conflicts only confirm the old truth: while some count their losses, others count their profits. War remains not only a tragedy, but also a highly profitable business, where the count is in the billions, and the rules are dictated by those who know how to turn destruction into bank accounts with many zeros.