Effects Of War Has On Our Economy

1981 WordsMar 10, 20178 Pages
For as long back as we all have known, Wars have been inevitable. In the mist of destruction, most aren’t thinking about the long term and short term effects that will reflect upon us for years to come, both negatively and positively. War has a profound influence on our countries economic history. Unfortunately, there must always be a winner and a loser. The victors have shifted economic and trade patterns forever. All while the losers leave with disgruntled markets, unstable economic growth, and their pockets of wealth turned inside out. After extensive research, I will tell you the many effects war has on our economy, the effect on International Business, who or what companies may thrive, which it destroys, and the overall everlasting…show more content…
Not just in modern day is this effective, but on record they say one of the largest percentages of tax increase was the Revolutionary War. If the money is not raised from taxes, then it is borrowed, which only adds to our current 20 Trillion dollar debt here in the United States. Last but not least, another way to pay for a war is to print currency. This only adds to our already large, hot topic of inflation. If we go back to the World Wars, you can see the trend of inflation immediately following the ending. After World War 1, many Americans returned from overseas only to find lower paying jobs and higher prices. Inflation had caused prices to spike so drastically that soldiers found their mothers, sisters, and wives currently working. Following WW1, society started to issue currency more freely instead of using the gold standard. Inflation also followed the Civil War, WWII, and Vietnam. The country was war induced and it was affecting everyone and everything. Unfortunately, inflation is worldwide. During the Civil War in Angola, their countries currency became so worthless, bottles of beer replaced it for everyday transactions. War not only drains a country financially, but it strips it of resources of all participants, creating an area of collapsing capital in things like factories, farmland, and cities all around, squeezing and suffocating economic output. Let’s take the Thirty Years’ War from the 17th

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