1 November 2013
Economics of Military Spending during Iraq/Afghanistan war
People are under the impression that wars are beneficial to an economy. They seem to create jobs and give a variety of businesses work. But do they really turn a profit or is there more spending being done than profit being turned in. The Iraq and Afghanistan war has been very controversial. Part of that controversy comes from the economic perspective of the war. One of the many sub-topics to the war is job creation or job loss. For every one million dollars spent towards the war since 2001-2011, has created 8.3 jobs. On the other hand, with one million dollars spent else where, it could have created many more jobs. 15.5 jobs could have been created in public jobs, 14.3 jobs in health care, and 12 jobs in home weatherization. With all the money spent on the war over that decade, 900,000 educational jobs could have ben created and 300,000 construction jobs could have been created as well. With an average of $130 Billion dollars spent a year over 10 years, you are looking at almost 2 million more jobs created if that money is spent in alternate sectors. The war in Iraq did create a lot of jobs but the issue there is that, the money that is made by the employees are generally spent abroad and spent on materials made outside of the US. So the jobs that would have been generated state side, also would’ve generated a lot of capital for the US economy. So overall, the war generated a lot of jobs but the money spent on the war could’ve generated more jobs domestically.
Military spending isn’t just spending the money but it is also keeping money from being spent in other areas. As you saw with jobs, more money spent domestically would’ve been a more efficient use of the money. The same goes for public investments such as US infrastructure. In 2001, military assets were valued at roughly $904 Billion. The total increase $341 Billion over the next 10 years. That puts the...
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