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