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← The Economic Cost of War
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Question
What does the economic concept of "human capital" explain about the long-run costs of war, beyond physical destruction?
1
Human capital — the productive knowledge and skills embodied in people — is permanently destroyed when young workers are killed or disabled, creating economic deficits that persist for decades
2
Human capital losses are less significant than physical capital losses because people can be replaced more quickly than buildings
3
Human capital refers to the financial capital accumulated by soldiers' families, which is destroyed by wartime taxation
4
Human capital costs refer to the retraining costs of converting wartime workers back to civilian production
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