The Bunker – News without the nonsense Does money really decide wars? Strange tales from the Vikings to the Luftwaffe to Ukraine
May 28, 2025
Economist and historian Duncan Weldon delves into the fascinating links between economy and warfare. He discusses how Viking pillaging ultimately boosted medieval economies and how Spain’s influx of silver made it poorer. Weldon provides insights on Genghis Khan as a globalization pioneer and critiques the Luftwaffe's glamorization of fighter pilots. Through his book, Blood and Treasure, he articulates how war shapes economies, typically with unexpected outcomes, and reveals the complex financial histories behind conflicts from the past to the present.
AI Snips
Chapters
Books
Transcript
Episode notes
War Finance Shapes Modern Economy
- Modern financial systems, like the Bank of England, originated to finance wars.
- State taxation and national debt systems emerged from the need to fund large military conflicts.
Changing Norms About War
- War was historically a rational and accepted tool of statecraft; norms about war have dramatically shifted.
- Military occupation to enforce debt repayment was acceptable just 180 years ago, unlike today.
Valorizing Fighter Aces Backfires
- Valuing fighter aces via medals motivated risky behavior, leading to high pilot fatalities.
- The Luftwaffe's emphasis on individual glory depleted air power by encouraging reckless acts by less skilled pilots.
