Instant Access To 100,000+ Essays!

IMPACT OF WAR WITH IRAQ ON AMERICAN ECONOMY ABSTRACT This research paper focuses on how the American economy has been affected by the war on Iraq. America alleged that Iraq possessed weapons of mass destruction (WMD), which could be used against American interests and the interests of its allies, and thus declared war in early 2003. This paper will explore how some specific dimensions of the financial system of the country were affected by choosing the military option. Introduction America is not only incurring direct costs from the conflict, but feared attacks on the homeland are also adversely affecting the economy. However, some optimists do expect that the country’s economy will rise to the challenge. Direct cost of war Unlike in the Gulf War, this time around the US was largely the sole financier of the operation and spent almost as much as $100 billion for military preparation and the war. (LaFranchi). The cost incurred during war preparation was massive. Transporting military equipment to the other side of the planet in addition to two hundred and fifty million troops resulted in an expense of approximately $13 billion. And the monthly cost of maintaining this force is a whopping $9 billion. A ‘shock an