Title: Economic Impact - The Impact Of The Vietnam War
Headings: The Economic Impact.
The Economic Impact.
Content: Economic Impact - The Impact Of The Vietnam War





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The Economic Impact. The Vietnam War cost the United States 58,000 lives and 350,000 casualties. It also had several effects on the U.S. economy. The requirements of the war effort strained the nation's production capacities, leading to imbalances in the industrial sector. Factories that would have been producing consumer goods were being used to make items from the military, causing controversy over the government's handling of economic policy. In addition, the government's military spending caused several problems for the American economy. The funds were going overseas, which contributed to an imbalance in the balance of payments and a weak dollar, since no corresponding funds were returning to the country. In addition, military expenditures, combined with domestic social spending, created budget deficits which fueled inflation. Anti-war sentiments and dissatisfaction with government further eroded consumer confidence. Interest rates rose, restricting the amount of capital available for businesses and consumers.