Quote:
Originally posted by slang
I think that after this war has been won, and the residual terrorists have been extinguished, the dow will make regular small gains to the point that some good jobs will be created.
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Dow does not make productive jobs. It is a measurement of and not a creator of productive jobs.
There is no history to suggest economic upturn. America did not pay for most of the Gulf War. America was paid by most of the world - biggest contributor I believe was Japan - to fight that war. That war resulted in a lesser recession because we paid so little. This war will be different - more like what Korea and VietNam did to the American economy. America will pay completely for this war and will suffer economics consequeneces. Its the old and well proven concept of guns and butter.
Basic economics. Money does not make a prosperous economy. After all that money is spent, then punishment either from inflation due to too much cash, or from recession due to no new products or useful capital equipment. With VietNam, we had something even worse - stagflation - both inflation and recession - because war results in long term negative economic results.
War creates a short term boost in economic activity. Then when that activity does not result in profits or productivity increases, then a downturn must result.
Only after war in Europe (both WWI and WWII), that resulted in America owning much of Europe, did a war instead result in economic boom. There is nothing in this George Jr inspired war that will create economic prosperity. It is but another problem with entering war too early - before a problem ever exists.