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  • The Impact of War with Iraq on the US Economy, Based on an Article from Business Week

     

    Essays2 Economics

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ID number:314673
Evaluation:
Published: 01.12.1996.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Conclusion
There are many aspects of this discussion, and a large number of economists have already set forth an almost equally large amount of theories, concerning the effects of a war with Iraq. The fact is that it is impossible to predict the cost of a potential war with Iraq because the variables are too many. A study prepared by a group of distinguished scholars (ref.nr.1), suggests that the costs could be anything from $99 Billion to $1.9 Trillion, depending on a number of things, most significantly the duration and - obviously - the outcome of the war.
When looking at the situation from a historical perspective, it is my opinion that a comparison to the Vietnam War can be made. Back then, just as now, the administration believed that the war would be short and the costs limited. Not only was the war lost, but the Pentagon underestimated expenses by approximately 90%, resulting in an uncontrollable inflation because of the government's policy not to cut expenses on "butter", in the attempt to curb the general opposition to the war. (Ref. nr.2)

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