From War to Financial Crisis – Analyzed with Critical Systems Theory

Abstract

The present article analyzes the transformation of the long-term risks of protracted wars from the battlefield to the economic system. Major wars, supplied with strong capacities due to extended manpower resources, advanced logistic capabilities and permanency of campaign, expose their states to extremely costly engagements. This includes heavy long-term costs for war veterans. Accordingly, the center of gravity on the battlefield (Clausewitz) is transformed to the financial systems of taxes and credit systems. This is a classical historical lesson; but this story is indeed central to understanding the link between the Vietnam War, the Afghanistan War, the Iraq War, and the background for the financial crisis that began in 2008.

Keywords

• war
• crisis
• system theory