Blood and Treasure

The Economics of Conflict from the Vikings to the Modern Era

Duncan Weldon

A history of the economics of warfare from the Viking Age to our current era, revealing how armed conflict has influenced world power.

Wars are expensive, both in human terms and monetary ones. But while warfare might be costly it has also, at times, been an important driver of economic change and progress. Over the long span of history nothing has shaped human institutions—and thus the process of economic development—as much as war and violence. Wars made states and states made wars. As the costs of warfighting grew so did state structures, taxation systems and national markets for debt. And as warfare became ever more destructive the incentive for governments to resort to it changed too.

Blood and Treasure looks at the history and economics of warfare from the Viking Age to the war in Ukraine, examining how incentives and institutions have changed over the centuries. It surveys how warfare helped drive Europe's rise to global prominence, and it explains how the total wars of the twentieth century required a new type of strategy, one that took economics seriously.

Along the way it asks whether Genghis Khan should be regarded as the father of globalization, explains how New World gold and silver kept Spain poor, ponders why some economists think of witch trials as a form of "non-price competition," notes how pirate captains were pioneers of effective HR techniques, asks if handing out medals hurt the Luftwaffe in World War II and assesses if economic theories helped to create a tragedy in Vietnam.

Underpinning this riveting narrative is a focus on how and why the economics of conflict have changed over time. This is a story of how economics can help to explain the motivations of war, and how understanding the history of warfare can help explain modern economics.

Duncan Weldon is a writer and broadcaster. As a journalist he has previously covered global economies at The Economist and the BBC, as well as presented radio documentaries. As an economist, he began his career at the Bank of England, before working in asset management and public policy. He is a member of the advisory board of the Centre for the Analysis of Comparative Advantage in the Global Economy at Warwick University. He is also a regular commentator on television and radio and writes for a variety of publications. Duncan's first book, Two Hundred Years of Muddling Through, was published in Britain and he lives in London.

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Endorsements & Reviews

Early praise for Blood and Treasure:

"War and wealth, or 'blood and treasure', are intimately connected. Thus, war is also an economic activity: it has economic motivations, demands economic resources and has economic consequences. But, over time, as Duncan Weldon explains in this brilliant book, those motivations, resources and consequences have changed. That evolution is not just the result of political and economic developments, but also a leading cause of them. The good news is that the economic gains from major wars have collapsed as the costs have soared. The bad news is even this may not be enough to curb humanity's horrifying propensity for mass conflict.” Martin Wolf, Financial Times Chief Economics Editor

"Chock full of marvelous nuggets, this fascinating book is both important and surprisingly cheering. As the world creeps towards war, we all need to understand the economics behind conflict. But, as this book so brilliantly shows, sometimes it takes war itself to teach us the most profound economic lessons about ourselves.” Ed Conway, author of Material World

"This is an absolutely fascinating and totally absorbing book and one that could not be more prescient. Weldon masterfully underscores the historical and ongoing—yet complex—connections between wars, economic development and institutional evolution. Full of wisdom and rich in depth and detail, this does much to further our understanding of the troubled world in which we live today. Brilliant.” James Holland, author of Casino '44, The Savage Storm, and Brothers in Arms

"Journalist and economist Duncan Weldon explores how war and violence have driven economic change and human progress through history. The author's deep analysis, from the Vikings to the war in Ukraine, proves that conflict has indeed shaped institutions and, in turn, economic outcomes—for better or worse. Fascinating and full of historical detail.” Spears Magazine