Find out the advantages and disadvantages for the Economic World

War of the economic world

Is War good for the Economy

Is war really good for the economy? This has been topic for most debates in almost all countries.  There is a lot misconception regarding this matter, some believe that war causes recession in the country on the other hand; some believe that the lack of war causes stagnation in an economy of a country.

Be it as it may, but wars can’t be all good or all bad for the economy.

Is War really for the betterment of the Country

Billions of dollars are being spent every day when a country is on the verge of war, which some analysts and members of the government believe that this is a great stimulus for the economy.

In an article posted in the New York Times, “The world just hasn’t had that much warfare lately, at least not by historical standards” in more recent times, developing Western European nations have no problems or fears of being dominated by other military forces because it often means a boost in income.

The stimulation provides the country with enough monetary circulation that makes pushes the country’s GDP looking more positive.

It is also a common misconception that wars causes recession in the country, sure it pushes the government to borrow more money, causing the country to be more engrossed in debt, BUT! Wars themselves don’t directly cause recessions. These military spending is often the cause of economic growth.

However, with all the benefits that these wars can bring to a country’s GDP, this is only one part of a bigger picture that wars bring to a country’s economy.

With all the borrowing that is caused by warfare, a country can only pay these debts in two ways, either the government can raise taxes, or increase the production of money which will not be good for both the tax payers and the current price of the monetary value.

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