War and Economy

Topics: Iraq War, 2003 invasion of Iraq, George W. Bush Pages: 2 (678 words) Published: January 20, 2013
The Business of War

It seems to be in this day and age that there is a general conclusion that war actually benefits the economy. Through decreasing unemployment by creating jobs as well as allowing those now employed to spend in the retail sector, it may seem as though war is an economic necessity to bring countries out of economic depression. This economic cycle of employment and spending may seem to benefit the economy as a whole, however in reality there is a much different truth to how war effects the economy of every country involved. By preparing for war a country may seem to rise in spirit and growth. What is not taken into account is the money that is spent on the war could have been spent else where, otherwise known as The Broken Window Fallacy. It is hard to tell if war is benefiting the economy as we will never know what the GDP would be if the money spent on the war was spent on things like education, jobs and training which benefit the economy in the long run. A war can only be funded in three ways and none help the economy.

To properly prepare a country for war the government must implement one of three economic actions. They can either increase taxes, decrease spending in other sectors or increase the debt that they are already in. All of these options are detrimental to society, for example, by Increasing taxes consumers will reduce their spending which does not help the economy improve or grow. If the government reduces spending on programs for education or improving infrastructure the benefits of these influential programs will be lost. Programs which help schooling build up society and by spending the money on war the potential of these programs will never be seen. Lastly by increasing the debt means that the country will either have to decrease spending or increase taxes in the future which just delays the inevitable.

At no point is the country going to war able to satisfy the needs of the people as well as the costs for the war....
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