American Economy And Its Reliance On War

1531 words - 7 pages

Saxena 8Sarthak SaxenaMs. KilbackHonors English 94 March 2014A New View to the American EconomyThe military intervention of America in foreign countries is often condemned, and widely debated around the country. Many citizens are fed up by the extensive expenditures the government carries out on wars that are hardly, if at all, related directly to the country. The constantly increasing expenditure in this department has led to a flat line in the standard of life and has caused the idea of global peace to be virtually nonexistent. As a result, many people believe that America should stop investing in war and should rather invest in technological innovationists like NASA.Since 2001, America ...view middle of the document...

This would also be a good time to point out that when America is compared to other countries on the GPI, or Global Peace Index, it is troubling to see that America ranks in about the middle half. The repetitive nature of the term "National Security" has seemingly ruined its sanctity. Where before the term was used for large operations that genuinely provided security to the U.S, now it is used for monitoring people at a whole new level, levels which are debatable due to the privacy laws implemented by the government itself. The level of security provided by the military is also dubious as countries like Iceland, which have nearly no military at all, do not seem to be rampant with terrorists. The answers to these countries low crime and terrorism events lie in where the government invests its money, and how the country remains neutral in world affairs. In essence, countries with small militaries are safe due to their expenditure on research and development of departments dedicated to national security as well as their limited interest on international issues not concerning them. Obviously there are several other more complex reasons, but these are one of the most important ones.So if the military is not that vital to security, then why can't the president just call back all the troops and implement a revised spending budget? Economist, Gary Burton explains why the U.S is spending so much money on war in his article "Does the U.S Economy Depend Upon War?" In his article, Burton states simply that America has a severe condition referred to as a Military Industrial Complex. This is a widely accepted theory by many factions of reformists and is very convincing, even to the eyes of a passer-by. Basically the term refers to the industries created as a result of war. As everyone knows, war needs many resources and the production of these resources employs millions of people and powers industry giants like LG and GM. In addition, it artificially increases the demands of products thus creating more jobs. When wars end, then the outcome can be devastating. Perhaps the greatest example of this was the Great Depression which started in 1918; right after the end of World War I. World War I is an exceptional war which opened up an entirely new category of war, called Total War. In a Total War, all sections of a country are directly implemented into the war effort. As the First World War ended, people did not realize that they should lower production levels but instead relied on the artificial demand it was still creating; thus when the troops finally came back, the market crashed sending entire nations in economic turmoil. Though the answer seems obvious, to just decrease production as war ends, the solution is not that simple. Burton explains that due to the fluctuating and unpredictable nature of a market, decreasing production could also lead to an economic breakdown. The solution to this problem is still being researched by statisticians around the globe....

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