Economies of War

Economies of War

When you think of war, what comes to your mind first? Do you see depression and fear?   Maybe you see tax increases and government promises.   While war may cost a country billions of dollars, economies of war driven countries both prosper and fail.   Economies fail during wartime, however there are some ways an economy can benefit from war.
This may be hard to understand at first, but economies can grow during a war.   There is always going to be a certain targeted area in the economy that does well.   Not every individual or business benefit’s from war.   What some people do not know is that a lot of the military vehicles, weapons, and uniforms, are made by local businesses.   What this means is the government contracts out local businesses, which specialize in certain fields, to construct and make equipment for the United States Military.   For example:
“A military aircraft assembly line in Long Beach, a small blimp factory in Canoga Park and a cargo airport in the High Desert are among the Southern California businesses that could receive a boost from America’s war on terrorism. Experts say the military response to the Sept. 11 terror attacks will solidify government support for a number of key local aerospace and military projects. But they also warn that the conflict could further weaken the travel and tourism industries.” (Daily News LA, 2001)
This makes the point that it is possible for some business to benefit from a war, however every benefit can lead to one or more problems.   How do you think the small blimp factory in Canoga Park did before the War on terrorism began?   How do you think the blimp factory will do financially after the war is over?   I could not find any numbers for this company but, like most small companies like this blimp factory, numbers have probably doubled because of the conflict.   Boeing also saw an increase in production getting the government interested in a new plane model; the C-17.   By putting this plane into production,...