How far this war will go,

Soldiers bodies shattered in a row"

War has begun

The scene is devastating and hearts are simultaneously filled with anger and sorrow.

The economy was affected and so were the citizens.

Those who survived often preferred death, as they had no resources.

The war had turned their lives upside down

Inflation hit up, loss of manpower and resources has made it worse.

Warriors lost their lives and their families.

Many times, war economies exist out of necessity, when a country feels threatened and must make
national defence as its priority, but they also exist due to cultural reasons.

the war between Iraq and Afghanistan has risen both nations indebtedness,

it was financed almost entirely by borrowing. Rising deficits have resulted in higher debt, a higher
debt-to-GDP ratio, and higher interest rates.

Financing these wars through debt requires high interest payments as well. The US has paid around
$200 billion in interest on war spending. If war spending continues as forecast by the CBO, the
country can expect to have paid about $1 trillion in interest by 2020.

Whether its World War II, the Korean War, the Vietnam War, the Cold War and the Afghanistan/Iraq
wars all have highly effected these seven macro-economic factors
i.e debt, consumption, investment, jobs, taxes, government deficits and inflation.

The country suffers as:

* Public debt and levels of taxation increase during most conflicts.

* Consumption as a percentage of GDP decreases during most conflicts.

* Investment as a percentage of GDP decreases during most conflicts.

* Inflation increases during or as a direct consequence of these conflicts.

The crowding-out effects of disproportionate government spending on military functions can affect
the service delivery and infrastructure development, ultimately affecting long-term growth rates.

When comparing the direct multiplier effects of military spending to other forms of government
spending, it is not as productive in economic terms as spending on infrastructure, education, or even
as tax cuts to increase household consumption.

In sum, the higher levels of government spending associated with war tends to generate short-term
positive economic benefits, specifically through increases in economic growth occurring during
conflict spending booms. However, negative unintended consequences occur either concurrently
with the war or develop as residual effects afterwards thereby impeding the economy over long
periods.

So is war good for the economy ?

Let's suppose the economy is on the low end of the business cycle, so we're in a recession or just a
period of low economic growth.

When the unemployment rate is high, people may be making fewer purchases than they were a year
or two ago, and overall output is flat. But then the country decides to prepare for war!

The government needs to equip its soldiers with the extra gear and munitions needed in order to
win the war. Corporations win contracts to supply boots, and bombs and vehicles to the army.

Many of these companies will have to hire extra workers in order to meet this increased production.
If the preparations for war are large enough, large numbers of workers will be hired reducing the
unemployment rate. Other workers may need to be hired to cover reservists in private sector jobs
who get sent overseas. With the unemployment rate down we have more people spending again
and people who had jobs before will be less worried about losing their job in the future so they'll
spend more than they did.

This extra spending will help the retail sector, who will need to hire extra employees causing
unemployment to drop even further.

A spiral of positive economic activity is created by the government preparing for war if you believe
the story. The flawed logic of the story is an example of something economists call the Broken
Window Fallacy.

Regardless of the reason, war economies sometimes show more technological, medical and
industrial progress because there is a race to create systems, products, services and ideas that
protect and defend better and/or cheaper. However, War economies sometimes exist at the
expense of domestic development and production.

Bertrand Russell righty said-

"War does not determine who is right - only who is left."

War is over