Does war sustain our economy?
Answer:
that is a very common misconception known as the broken window fallacy which is basically the assumption that the more things are destroyed the more money is made out of fixing them. the only thing that happens is that funds are diverted from one industry to the war industry. i mean if we didnt spend or make income from the war industry it would be something else more usefull like education or health care?
Think of how many people wouldn't have a job without the military
Its big business, but man if we could stop this fighting and start making more useful things than guns... wed all be a lot better off... fixing social security and providing for nationalized healthcare would be a piece of cake.
There is a long history of war and conflicts improving economies.
Yes...It is. The DOD get's an awful lot of our money to pass out. This thing in Iraq, is somewhat smaller than Viet-Nam or WWII. Although, the economy has good points, right now, a larger conflict, would more than improve money flow. " There will be wars, wars and rumors of wars"......LATER
Wars serve several purposes, yes they do boost economies but they are also the testing/training grounds for new age weaponry and for training and keeping our troops on the cutting edge. Unfortunately and sad to say; the ones who fail the test dont get a second chance!
Yes war does add a lot to our economy. Looking back in history probably the biggest example would be WW II pulling us out of a very deep depression. However, it takes unbelievable amounts of money to sustain a war so the government just prints more money which then bring down the value of the currency. So there is a definite trade off. Right now look at the way the economy is booming, but also look at the deficits, and the de-valuation of the dollar.
To answer your question honestly one would have to say that war is a double edged sword for the economy. First, with war there are a lot of job that need to be filled in order to make the war machine go. The general public in the country that has gone to war typically see a strong increase in employment, wages earned, a GDP. However, with the influx of money in to the population, it tends to lead to inflation. Inflationary periods cause the dollar to become weaker, and so the money the individuals are making become worth less. As this happens the general public tend to slow down with spending which will eventually kill the economy.
Hope this helps.
War increases demand for goods, so they say, which in turn is supposedly good for the economy. What Washington's propaganda department failed to explain you is that the same money could have been used to improve the infrastucture or even funding productive activities.
Just because the money is spent on tanks doesnt make the economy any better than spending it on new factories. You are just taking money out of the regular industry to spend it in the war industry.
On the other hand the US needs to wage war to protect its economy out of the hands of terro.., i mean, foreign creditors.
I'm agreeing with Anita A. War doesn't improve the economy it is a drain on it. We just have a strong enough economy to support it right now.
The old timers look at the depression and world war two and claim that WWII got us out of the depression but we were already coming out of it before the war started. I can't say if we actually benefitted from WWII or not. While its true we were the only industrialized power which made it all the way through the war with its industrial capacity untouched. We also through our tax dollars built brand new industrial capacity in Europe and Japan.
the war is costing tax payers billions of dollars. i dont know where you get the idea that we are making money because if we did-it should show.
War stimulated our economy through WW II, and probably after that. But with this war Bush has us in, we are spending money the next 3 or 4 generations will never be able to pay. Congress needs to get us out of the Iraq war, and get Bush out of office.
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