High Iraq War Spending Leads to Slower U.S. Economic Growth

[Omaha Steve]

http://www.laborradio.org/node/5826

High Iraq War Spending Leads to Slower U.S. Economic Growth - 05/02/07

By Doug Cunningham

The high military spending on the Iraq war is leading to fewer jobs and slower economic growth for the U.S. That’s according to a report from the Center For Economic and Policy Research. Using a simulation model from the economic forecasting company, Global Insight, the report shows the economic impact of higher military spending turns negative in the sixth year. After ten years it results in 446,000 fewer jobs and inflation and interest rates are driven higher, which slows sales of big-ticket goods like cars. Manufacturing and construction lose the most jobs. Economist Dean Baker says while it’s often believed that wars are good for the economy, in fact higher military spending diverts resources from productive uses. And that, he says, slows economic growth and produces fewer jobs.

[enid602]

1. You think it's bad now . . .

Wait until the war is over; remember, our paultry economic growth has only been achieved by means of record government (war) spending. That spending is unsustainable.