<P> "Destroy any amount of physical capital, but leave behind a critical number of knowledgeable human beings whose brains still house the culture and technology of a dynamic economy, and the physical capital will tend to reemerge almost spontaneously"--George Horwich, Purdue University </P> <P> Even in disasters with few physical injuries, a large portion of the economic costs of may be public health effects (approximately a tenth, in the case of the summer 2007 floods in the UK). The economic costs of disruption to children's education are significant . Mental health issues may be triggered or exacerbated by the distress suffered during the disaster . Health advice on minimizing psychosocial stress has been given for disasters . While public health costs may contribute to economic activity and GDP growth, a growth in demand for medical or educational assistance is unlikely to be seen as beneficial . </P> <P> The argument can be made that war is a benefactor to society, since historically it often has focused the use of resources and triggered advances in technology and other areas while reducing unemployment . The increased production and employment associated with war often cause some people to claim that "war is good for the economy ." However, this belief is often given as an example of the broken window fallacy . The money spent on the war effort, for example, is money that cannot be spent on food, clothing, health care, or other industries . The stimulus felt in one sector of the economy comes at a direct--but hidden--cost to other sectors . </P> <P> Bastiat himself argued against the claim that hiring men to be soldiers was inherently beneficial to the economy in the second chapter of That Which is Seen, and That Which is Not Seen, "The Disbanding of Troops". </P>

Bastiat what is seen and what is not seen