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WAR and US ECONOMY During time of war the economy is expected to strengthen and grow but under certain circumstances like the ones found in the United States it can be a different story There is no doubt that the war with Iraq will create an unstable economy in our country Positively a war will certainly encourage and demand many people with unused abilities back to work I have found in the Gross Domestic Production GDP this can be true This also can carry a huge deficit in real living values that will last for several years In the future our nation will be economically worse off The assumption of many Americans is that an attack on Iraq will help continue what is at this time a pretty weak economy Without a doubt military action against Iraq will get people off of the unemployment list but it will not get people to buy goods and services People might wait that extra week or two to purchase a new car just to see how the economy flows If this occurs for example the cars at the dealership will not be sold at a fast enough rate and then further down the road people at the manufacturing plants might be laid off Ultimately this will sink the economy into a greater recession However most people will purchase essential products instead of self fulfilling indulgences in which money could be saved A starting aspect for analyzing the economic impact of an attack on Iraq is the Gulf War in 1990 The world at that time was heading into its last recession making the timing of the war in alliance to the economic cycle very different The Gulf War came at the end of a boom rather than during the early stages of a recovery As a result of the Gulf War and Iraqs invasion of Kuwait oil prices more than doubled Ever since Iraq has been giving
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