How has the IRAQ War affected Our ECONOMY?
Everything is related but it isn’t just the war. When the terrorists started the war the economy went to the crapper, nothing we (US) could have done about the economy then. The US didn’t raise taxes to fight the war, so in theory the American people had more money to spend. The real problem is staring in the mirror every morning, it is the American appetite for spending. 1) People bought houses they couldn’t afford and started to default on the loans. The banks foreclose to recover the losses but couldn’t resell the foreclosed houses because the market was overvalued. The government had to come bail them out. 2) Gas cost was astronomical but people kept spending. Gas was not so high because of the war, it had almost no effect. It is that the global economy had been so strong a million Chinese, Indians, and Russians learned to drive. OPEC didn’t increase production to compensate for the increased demand (why would they, they were making off like bandits) so high demand with lower suppl
