Economic Issues: Is the war in Iraq good for the economy Essay

As most of the issues concerning nowadays deals more on the economic impacts of the actions of the giving medication, in that respect have been a lot of debates arguing if whether it would be beneficial to the US the ongoing struggle in Iraq. In an economic view point, it is put right that funding contend really requires a lot of money to slip away in order to sustain it which in turn involves high probability costs on the part of the American people.Last year, around $1 trillion was the expected spending of our presidential term to fund the express war in Iraq (Wolk 1) while there are sectors in the government that lacks full budgets to continue its functions to serve the American people. Like for instance, the Congress decided to restrict the fund allotted for education to around $12. 7 billion. Due to the war in Iraq, the government have incurred tremendous amount of budget deficit, and in order to solve the said problem on the finances of the government they sacrific ed the welfare and pass the burden to the students.Moreover, taskes rate were increased by the government due to the need of more funds. It was found out that most of the tax collection of the government entirely goes to transfer payments like the war in Iraq. Moreover, the funds being used for schools came from property taxes funds for roads and link came from gas taxes while user fees funds airports, sewer and water systems (Where Do Your Taxes Go? 2). The government also uses the funds generated from IMF to perform its designated functions.In short, the government charges us taxes in order to fund the war in Iraq and non to give us infrastructures and services that are in the first get in role of the government to its citizen. Although at some point in measure prices of forms rise by the pouch of the war, further it does not guarantee that it would ride out at that level. Moreover, it was the go of the expectations of the setors and not because of the direct cause of the war (Glassman 1).It is subdued up to the investors how they will view the war in Iraq- beneficial or detrimental to stock market. If they see that the war would boost the economy in the future, then, they would improved the stock market. But if the investors think that it would be risky to invest by the time the war began, then, war is detrimental to the financial institutions of the economy.Moreover, the US Central Bank said last November 6 that geopolitical doubtfulness is the reason behind the economic turmoil like the cutting of the take rate to 1. 5%. this just tell us that war in Iraq puts no good in the economy. Deaths might weaken the labor compact of the economy and this result to lower productivity and growth of the market (Schifferes 1). enlist rate pressured to go up and could negatively affect the profitability of the companies in the market. Moreover, there are rumors in the market that Iraq will cut their hand over of the oil in the international market as a result of the war (Miller 1).With this, there is a possibility that prices of oil products to rise which plays a vital role in the production of final goods in the market. It was said that the price of oil increased from $35 to $40 at the start of the war and this greatly affects the level of the productivity of the economy. Actually, there is really no problem on the military intervention of US to Iraq economic-political situation if it only involved a short period of time (Stiglitz 1).But the menses situation seems to be not the case since until now the war never-ending to occur in the desserts of Iraq which as we have said imposed uncertainties to the stock market, undervalued the welfare of its citizens and the reputation of the government to the foreign investors. Short run impacts of the war can still be handled by the market system itself but in the long run, there is already a need for the collaboration of all the sectors of the economy to put back again the economy into its rest condition.