Economic Benefits of Wars Assignment | College Homework Help

Wars were good for the economy because when the end the economies income increasesCollege Homework Help

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Economic Benefits of Wars


Wars benefit the economy of some countries when they end. Countries such as the United States of America recorded big net profits in their involvement in the wars in the Middle East, while several millionaires emerged in America after the world wars.

This shows that wars are a lucrative business that positively impacts the country and its people. There are costs associated with wars, but overall, benefits such as the growth of arms industries, improve in the nation’s Gross Domestic Product, creation of employment, and improve the stock market.

Wars lead to the growth of arms industries. Arms industries are created during wars to supply weapons, and by doing so, the revenue of the country increases. Some companies take part in the wars than are paid for their services by the nation, which not only benefits them individually but also the country after taxation.

Wars increase the Nation’s Gross Domestic Product (GDP). Military spending increases a nation’s Gross Domestic Product in the short run because of the various industrial activities(Hausken 459). An increase in military spending increases the country’s GDP, and so countries spend in relation to their competitors.College Homework Help

Creation of employment and source of living. An increase in military spending creates employment for the companies given contracts of supplying the arms and to the people who work in those industries and defense forces. This reduces unemployment and thus increasing the national output.

Improves the stock market. Victories in wars create confidence in people boosting the stock market in return.Get Business and Finance homework help today

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