Title: Effects of war on economy | Economics | Welfare
Headings: Effects of war on economy
Effects of war on economy
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EFFECTS OF WAR ON ECONOMY
Case study: History of combat by the United States of America.
A stronger administration and an improved economy enabled the United States
Other writers have emphasized the continuity of industrial development prior to
Sharp limits on defence spending during the administration of President Dwight
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liberal economists argue that war, and particularly World War II, was the
strongest influence establishing Keynesian economics as a guideline and a
justification for U.S. government fiscal policies for the post-war era—policies that
led to widespread employment, high earnings, and a modest measure of income
redistribution. Even some strong opponents of the Vietnam War began to argue
in the mid‐1990s that full employment was only possible in the late 1960s
because of that war. If the effect of military spending during the war years is the most obvious point
of impact on the economy, the most lasting one has to do with veterans' benefits
paid after the war to veterans and their dependents. Veterans' benefits have
been paid for every war since the American Revolution. They amounted to about
two‐thirds of the total dollar cost of the Revolutionary War; more than half the
cost of the War of 1812; and 3.7 times the cost of mobilizing the Union forces in
the Civil War. Surprisingly, these benefits continued to rise for about forty to
sixty years after the end of each of these wars and did not cease until well over a
century later. Benefits for Civil War veterans and spouses ceased only in the
1980s; World War II benefits will be paid until sometime after 2070.