Munich Personal RePEc Archive

Side Effects of War on the US Economy

Farhidi, Faraz (2015): Side Effects of War on the US Economy. Published in: Journal of Business & Economic Policy , Vol. 2, No. 3 (September 2015): pp. 145-154.

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Abstract

Having studied the ancient empires, achieving political and economic powers, have been hovered one of the most critical issues all the time for the nations. The strategies to secure those might be different, but the intension still stays the same: controlling the labor and capital markets. Reviewing the historical colonization, one would recognize that there is a significant correlation between the political power and economic power within the countries. Among all the explanations on the approaches to attain these ambitions, using conquest other nations to gain resources and new territory and labor force seems to be one the unfortunate motives in this discussion. In the current study, having analyzed the macro data, I claim the feasibility of a positive causal relationship between having wars abroad and government expenditure in the long run within the studied period in the United States. While in the investigated duration, war seems to have a positive effect on the personal consumptions and the negative one on the export of goods and services, as well as private investments in the short run, as a consequence.

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