IMPACT OF WAR WITH IRAQ ON AMERICAN ECONOMY.
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. .
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 and awe" war strategy raised the total bill several notches higher (Stark).
Equipment costs are as follows: $55 bullets; million-dollar cruise missiles; $4 billion aircraft carriers and $50 million jets on board (Stark): The economy was bound to take a beating.
Everyday costs include supplying fuel, delivering foodstuff, and building laundry facilities for the soldiers in the region (Stark).
The cost rose further after Iraq was occupied, and will continue to rise depending upon the duration of the occupation. Bringing peace to Iraq is more expensive than fighting against it as it requires more inflow of troops, and it may take years to reconstruct the devastated infrastructure and restore the war ravaged population with humanitarian aid (Stark).