How the State Profits from War Essay

One of the most enduring misconceptions in economics is that struggle is beneficial to the economy (Moffatt, n. pag. ). This myth was further perpetuated by the economist and bleak-sprung(prenominal) York Times columnist Paul Krugman, who wrote Ghastly as it may seem, (the conclusion of the man Trade Center) could even do around economic honest the driving force behind the economic slowdown has been a swallow in business investment. Now, all of a sudden, we need some new office buildings (Tracinski, n. pag. ). Indeed, bad economics reign in moments of crisis and or panic, when great deal atomic number 18 desperate for solutions.To refute the alleged benefits of the struggle Economy, critiques use the hallucination of the broken windowpane (Tracinski, n. pag. ). When a vandal throws a brick through a breaks window and the shops owner has to spend, say, $ two hundred for the windows repair, the people get out think that the defacer has given a collateral contribution to society. After all, the repair of the broken window meant an instant set ahead in employment and economic activity (Tracinski, n. pag. ). entirely what these short-sighted citizens didnt spang was that the $200 that was spent on fixing the window could imbibe been utilize in ventures that might have advanced the shop owners enterprise.Unfortunately, proponents of the war Economy assumed that (since) a broken window mint stimulate the economy, (it must be better) when literally thousands of them are broken (Tracinski, n. pag. ). For them, warfares are crucial for the survival of modern economies (Cline, n. pag. ). War Economy advocates believed that almost every assiduity is involved with providing goods and services to the armed forces (uniforms, food, medicines, weapons manufacturing, etc. ). Hence, should war be eliminated, these businesses, particularly technology and manufacturing, will fold up.Another argument of the backers of the War Economy is that it is the fastest solution to an economic slump (Moffatt, n. pag. ). When the economy is undergoing recession, proceeds is low and people are spending less than usual. But when the governing goes into war, it will need weapons and equipment for its soldiers. Economic activity is therefore expected to summation due to the rise both in government spending and the backstage sectors business transactions with the miliatry.Corporations will scramble for contracts that will allow them to supply uniforms, vehicles and bombs to the army. These companies will have to hire more workers to prolong up with the increase in demand, lowering the unemployment rate in the process. in that location are even some workers who will be employed to put back those who volunteered as reservists abroad. Since the unemployment rate is decreased, consumers will spend more again. Increased consumption, in turn, will boost the retail sector. At the end of the day, there will be overall economic growth, thanks to the govern ment preparing for war.However, critics contended that the above-mentioned intercommunicate economic advancement is at the expense of helpless civilians from Third World countries (http//www. unpac. ca, n. pag. ). In 2002, annual global soldiery expenditures were estimated to be more than $800 one million million million (http//www. unpac. ca, n. pag. ). The United States was at the top of this list, spending $343. 2 billion per year (http//www. unpac. ca, n. pag. ). Canada earned more than $3 million from selling weapons in the resembling year (http//www. unpac. ca, n. pag. ).According to the United Nations Platform for Action Committee Manitoba (UNPAC-Manitoba) hold The Economics of War (n. d. ), a large part of the economies of all of the orbs wealthiest countries derives from the sale of weapons (http//www. unpac. ca, n. pag. ). From 1996 to 2000, the US exported $54 billion worth of ordnance 45% of the total amount of weapons that was exported around the world (http// www. unpac. ca, n. pag. ). Russia came second at $21 billion (17%), followed by France ($11 billion or 9%), the United Kingdom ($8 billion or 7%) and Germany ($6 billion or 5%) (http//www.unpac. ca, n. pag. ). As a result, says the United Nations schooling Program (UNDP) in 2002, 500,000 firearm-related deaths occur annually (http//www. unpac. ca, n. pag. ). Each year, land mines assassinate 15,000-20,000 children and adults (http//www. unpac. ca, n. pag. ). Iraqs cancer rates rose to 700% between 1991 and 1994 due to chemic weapons, while 86 million people have perished in hostilities subsequently World War II (http//www. unpac. ca, n. pag. ). The Iraq war in 2003 was the latest example of how the US turned war into a money-making venture.It was rooted in the logic of global monopoly capital, specifically American capitalism, to expand into an empire (Barona, 33). Despite macrocosm packaged as a terrorist war, (to instill fear among detractors) it was brought about by the gl obalization policies of American multinational companies, particularly the US oil industry and the military-industrial complex (MIC) (Barona, 33). Iraq is one of the worlds biggest oil reserves it, along with other OPEC countries such as Saudi Arabia, Iran, Kuwait and the United Arab Emirates, has 79% of the worlds total oil supply (__________, 16).For the US to have unlimited access to Iraqs oil, it simply had to remove Saddam Hussein, a staunch US opponent, from power. Back home, the US economy was sustained by military spending the injection of fresh capital was necessary to re grade an economy that would continue to deteriorate if left to the free market (Barona, 33). But the Iraq war proved to be disastrous for the US economy. The US spends $200 million daily just to be able to continue its military operations in Iraq (Wolk, n. pag. ).Even if the US finally decides to pull its phalanx out of Iraq within another three years, total direct and confirmatory monetary values to US taxpayers will likely by more than $four hundred billionthe total economic bear upon at up to $2 trillion (Wolk, n. pag. ). Economist and Nobel Prize winner Joseph Stiglitz (a well-known castigator of the Iraq war) claimed that the total cost of US military intervention in Iraq is a staggering $1 trillion to $2 trillion, including $500 billion for the war and occupation and up to $300 billion in future health care cost for wounded troops(Wolk, n. pag. ). Stiglitz added that further expenses include a negative impact from the rising cost of oil and added interest on the national debt (Wolk, n. pag. ). These astronomically huge sums of money came from taxes funds that should have been diverted to staple fiber cordial services such as education, health and housing. While ordinary American citizens were suffering from the economic catastrophe brought about by the Iraq war, a a few(prenominal) individuals and corporations cahsed in on the said conflict.In 2007, Lockheed Martin (t he leading weapons manufacturer in the US) had a profit increase of 22% (Scheer, n. pag. ). In the same year, the winnings of its competitors Northrop Grumman and General Dynamics rose by 62% and 22%, independently (Scheer, n. pag. ). Boeings profits, meanwhile, increased by 61% (Scheer, n. pag. ). Below are some personalities who were said to have also profitted from the Iraq War a) Former US electric chair George W. Bush, Sr. Shareholder and former ranking(prenominal) Advisor in the Carlyle Group, a defense contractor with ties to the Saudi royal family and the Bin Ladens.b) Former falsification secretary Frank Carlucci Member of the RAND Board of Trustees and co-chair of the RAND Center for Middle easterly Public Policy Advisory Board. Also the chairman of the Carlyle Group. c) Former Secretary of State and Secretary of Treasury James Baker Former Carlyle Senior Counselor. d) White House Budget Advisor Richard Darman Carlyle Managing Director e) US transgression Presid ent Dick Cheney Head of Halliburton Co. , an oil enterprise that traded with Libya and Iran through strange subsidiaries (Lynch, n. pag. ).Thanks to the hysteria brought about by the War on terrorist act and the Iraq war, taxpayers were swindled into funding the War Economy that made millionaires out of Bush and his ilk. And as long as the absurd propaganda of The War on Terrorism and the Iraq war continues to exist, ordinary Americans will spend their entire lives paying taxes not for basic social services, but as a tribute to Bush and his sort for them to be able to live like kings.Works CitedThe Oil comparison in the US Bid against Iraq. Education for Development October 2002 15-16. Barona, Caesar.Technology, Power and the War against Terrorism. The National Guilder July 2002 32-33. Cline, Austin. Economic Benefits of War. n. d. About. com. 18 February 2008 . Lynch, Colum. Firms Iraq Deals Greater Than Cheney Has Said. 23 June 2001. world-wide Policy Forum. 19 February 20 08 . Moffatt, Mike. Are Wars Good for the Economy? n. d. About. com 18 February 2008 .