Friday, October 8, 2010

How the War is Adversely Affecting Our Economy

The wars in Iraq and Afghanistan are detrimental to the economy because the more money that is spent on war, the less money that can be spent on projects to improve our country. The money that is used on the war could be used to improve schools, build better roads, or a number of other projects. This would not only improve the country, but it would also improve the economy, because if more money was spent in the U.S. then we would be improving the economy while creating jobs. Now, the economy and the state of the union has its ups and downs and we cannot say that the war caused all of the problems in the country, but it is a significant factor. Also, speaking of the economy, the deficit has always been increasing, but the war has added a huge amount to the debt according to one article the war has added $1 trillion to the national deficit. While the war has increased the   deficit by a trillion, the overall estimate for all the money spent on the wars in Iraq and Afghanistan is somewhere between 1 and 2 trillion dollars. When the war started our economy was doing fine. Even after spending significant amounts of money our economy was not affected much at all. This was because there was money in the federal reserve that could be liquidated. But now the economy is starting to feel the affects of the amount of money that we have been spending on the wars.

2 comments:

  1. I can believe that the war has added $1 trillion to our country's deficit. What I can not believe is how the administration has allowed this to happen and how they justify it. Have you found any information on that?

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  2. Well to be fair, a trillion dollars is an estimate, but at the same time every source I have found estimates anywhere from hundreds of billions of dollars to a trillion. And, considering both wars have been going on for years, it is not surprising that we have spent so much money. Now after mentioning this, I have to agree that this is a lot of money and there are so many other things this money could be used for. And, as far as how the government could justify it; wars are always expensive.

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