Exploring the Economic Impacts of Military Spending

704 Words2 Pages

Military spending both can have positive and negative effects on the economy. “Government military spending during conflict does create more employment, economic activity, and new technologies resulting in a higher GDP, except the Afghanistan and Iraq war with its estimated cost of $1.4 trillion.” (thereformed broker.com). Most of the time, these benefits are short term. The most negative impact of war is that it creates the loss of humanity, and increases taxes for the taxpayer. Changes in economics occur during conflict they are; public debt and taxations, inflation, stock market valuations, economic consumption and investment. When analyzing marginal costs and marginal benefit during war, society has to expand its production using …show more content…

Government Failure in the news; give me a couple of examples. Please list the failure, what they are trying to do to correct it and is it working? A government failure happens when the government tries to help a market that is failing in the economy, but in turn creates more harm to the market. First a failing market that does not produce positive outcomes for society has to happen for the government to step in. Two government failures are; Heparin contamination and air traffic controllers sleeping. The FDA is charged with overseeing the quality and safety of the drug. They were supposed to make sure the drugs are safe to be released on to the market especially those that are imported. A deadly bacterium contaminated the heparin and killed people. As of now, the Heparin contamination incident is still under investigation and congress is demanded the documentation as to why it took so long for the FDA to remove it from the market. Air traffic controllers have been found often sleeping, or making almost catastrophic mistakes as a result of being overworked. The Federal Aviation Administration failed to properly maintain an important public job. The action that was taken was air traffic controllers cannot be alone at

More about Exploring the Economic Impacts of Military Spending

Open Document