Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
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The Surging Protectionist Sentiment There is a surge of protectionism and populism worldwide. From President Trump’s Protectionist Rhetoric and his America First and Make America Great Again slogans to the rise of Anti Immigrant sentiment in Brexit Britain and the latent hyper nationalism in other countries around the world, there is a backlash against globalization. […]
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The recent India Pakistan skirmishes have brought the issue of a nuclear Armageddon to the forefront of international politics. The news channels in both countries, as well as the international media, have been discussing the possibility of the situation escalating into an all-out nuclear war. The question of the futility of such a war has also been raised since it would bring nothing but destruction to both sides.
During these debates, the question of the futility of nuclear weapons was raised many times. Many people believe that the amount of money being spent on nuclear weapons is simply going down the drain. Under normal circumstances, these weapons are never really going to be used. Hence, both India and Pakistan, as well as other countries of the world, would be better off if they simply stopped spending money on nuclear weapons.
In this article, we will have a closer look at the economics of nuclear weapons in order to determine whether the money which is spent on acquiring nuclear weapons can actually be considered to be wasted.
The real fact is that nuclear weapons are a relatively cheaper way for smaller states to defend themselves against much larger aggressor states. Conventional warfare is symmetrical. This means that to counter a certain number of troops on the ground or fighter jets in the air, an army has to retaliate with almost equal strength. The problem with smaller countries is that sometimes it is not economically feasible for them to compete with much larger nations. This is where nuclear weapons come to the rescue. They act as a deterrent to the aggressor power. Some examples of such deterrence have been listed:
The bottom line is that nuclear weapons act as a very credible deterrence against foreign invasion. Up until now, there has been no invasion of a nuclear-armed state. The aggressor powers will always be concerned that if the smaller power is backed into a corner, it could unleash a nuclear Armageddon.
Hence, if one comes to think of it, the money spent on nuclear weapons makes complete sense. It is true that billions of dollars are being spent on weapons that will never be used. However, these weapons act as an insurance policy. They are preventive measures against foreign aggression. If these billions of dollars were not spent on the creation of nuclear weapons, the world would have fought many more wars, and trillions of dollars would have been spent. Also, enormous loss of life and human suffering would have been inflicted on the planet. Smaller states are therefore better off, spending money and buying a nuclear insurance policy which all but eliminates the chances of a conventional war.
The bottom line is that nuclear proliferation may not be a bad thing. Ironically, it may act as a deterrent and bring peace and stability to the world. The current status quo wherein only some states are nuclear-armed works in favour of those states as it enables them to dominate others. Once again ironically, the absence of nuclear arms leads to warfare causing wastage of precious economic resources and human life.
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