The War and Recession

Have you ever asked yourself, how much does war effect the economy? Or even if it has any impact whatsoever? Well your not the only one, in fact many people ask themselves this all the time, and it looks like it will not stop being asked any time soon. Well the answer to this question is yes, war has a very immense impact on the economy of a nation.

One way that we can tell that war effects the economy is a recession, which we are without a doubt in currently, and the oil prices going through the roof. This is in large part due to the war in Iraq and Afghanistan. A war that economist say "the true cost of the war goes beyond the direct appropriations for fighting it." Even in the state of recession in which we are most people would be glad to pay $2 a gal for gas but that would not be happening any time soon. Not with the price of oil being more than $100 a barrel and this price is on the rise. So yes, I would say war greatly affects the economy.

http://www.usatoday.com/money/economy/2008-04-09-iraq-war-economy-cost-obama_N.htm

How Does the War in Iraq Affect Our Economy

Many people have debated on how the war in Iraq has affected, or if the war even affects our already failing economy? Because of the war many of our resources have had a increase in their taxes in which the consumer spending falls due to that, which does not help out our economy at all. Suppose the government decreases their spending on social programs. First off we have lost the benefits that the social programs have provided. The people that receive the services from those program will now have less money to spend on, so the economy will decline as an whole.

To me the war in Iraq has affected our economy badly because alot of the government spending has gone to the war and other services that the main public can obtain, ie:Guns, tanks, planes, military technology. Also I think that due to the government spending more on domestic things that the imports from other countries is getting more expensive and due to that decline the spending of the consumer which in turn declines the economy.


http://economics.about.com/cs/issues/l/aa032003c.htm

The War and the Economy

Do Wars effect the economy? Well, is the war in Iraq effecting the economy today? Yes, war in any country effects the United States economy. Why? Because the United States doesnt have all of the resources other countries have. So, we get our food, oil, cars, gas, clothing, toys and many other matierals from theses other countries such as China, Japan, and Iraq. When we go to war or when theres a war in these countries, the prices increase. When import prices increase, there's less demand and consumer spending decreases.

The war in Iraq, for example, is hurting the economy "in some ways that are obvious, such as higher federal deficits and higher oil prices" which is effecting the economy in various negative ways. Though, the "biggest impact on the U.S. economy is through oil prices." Also, there has been a major "surge in federal defense spending" which adds to "the record federal budget deficits". So, the real question isnt, "Do wars effect the economy", its "How much do these wars effect the economy?"

http://www.usatoday.com/money/economy/2004-06-08-iraq-effect_x.htm