Wars are Not Good for the Economy Essay -- Economics War

One of the more endure myths in Western society is that wars argon somehow good for the economy. numerous people see a great deal of evidence to fight back this myth, later all World War II came directly after the Great Depression. This faulty belief stems from a misunderstanding of the economic itinerary of thinking.The standard a war gives the economy a boost instruction goes as follows Lets suppose that the economy is in the low end of the wrinkle cycle, so were in a recession or just a period of low economic growth. The unemployment rate is high, people may be making less purchases than they were a year or two ago, and boilers suit output is flat. But then the country decides to prepare for war The politics needs to equip its soldiers with the extra gear and munitions needed in enact to win the war.Corporations win contracts to supply boots, and bombs and vehicles to the army. Many of these companies testament declare to ask extra workers in order to meet this increa sed production. If the preparations for war are large enough, large numbers of workers result be hired reduce the unemployment rate. Other workers may need to be hired to cover reservists in private sector jobs who get sent overseas. With the unemployment rate down we have more people cash in ones chipsing again and people who had jobs before will be less worried about losing their job in the afterlife so theyll spend more than they did. This extra spending will military service the retail sector, who will need to hire extra employees causing unemployment to overleap even further. A spiral of positive economic activity is created by the government preparing for war, if you believe the story. The flawed logic of the story is an example of something economists beef The Broken Window Fallacy.The Broken ... ... a factor of production which will certainly help economic growth.2. Stability and Economic Growth in the Middle East If peace can somehow be accomplished in the Middle East, the U.S. government might not have to spend as much money on the military as they do now. If the economies of the countries in the middle east become more stable and learn growth, this will give them more opportunities to trade with the United States, improving twain the economies of those countries and the U.S.Personally I do not see those factors outweighing the short barrier costs of the war in Iraq, but you can make a case for them. In the short term, however, the economy will decline out-of-pocket to the war as shown by the Broken Window Fallacy. Next judgment of conviction you hear someone discuss the economic benefits of the war, please tell them a little story about a window breaker and a shopkeeper.