After the post-9/11 wars, the US has spent $8 trillion. This money went to various areas like direct war costs and veteran support. Not all of this money directly related to war is included in the $8 trillion.
This spending did not go into areas like healthcare and public infrastructure. Future interest payments could be more than $6.5 trillion by the 2050s. The US borrowed a lot for these wars. This borrowing added to the US’s debt
The money spent on wars could have been used to help the economy grow. Basic services and security at the local level have also seen a lot of funding. This includes money for veterans and local security measures.
Key Takeaways:
- Military intervention since 9/11 has cost the US $8 trillion, with big future interest costs.
- Less money went to healthcare and areas like public infrastructure, because of military focus.
- Supporting the wars used billions in state, city, and private funds.
- The country’s debt grew because the US borrowed to pay for the wars.
- When investing, think about how military operations can affect stock prices.
The Effect of Military Political Power on Economic Development in Democracies
This part explores how military power affects the economy in democracies. Studies show that in democracies, it’s hard to balance military needs with public spending. The military sometimes gets too much power. This can slow down economic growth by making policies that mainly benefit them.
A big study looked at 100 countries over 25 years. It found that in democracies without military rule, the economy grows faster. But if the military is involved in making decisions, it slows down economic growth.
These results highlight the need to keep the military under civilian control. This is crucial for economic growth in democracies. When the military doesn’t control policies, economies do better. Decision-making is smoother, and growth is more likely to happen.
Research Findings on Military Political Power and Economic Growth
“Democracy has shown to have a positive impact on GDP growth, but solely when military political power is absent. The presence of military influence obstructs decision-making and impairs economic progress in democracies.”
– Study on the Relationship Between Military Political Power and Economic Development, 2019
Implications for Policy-Makers and Investors
These insights are important for leaders and those investing money. For leaders, it’s key to keep the military away from political power. This helps them make good economic decisions. It allows them to use policies that help the economy grow.
For investors, understanding these findings is crucial. It can help them see the risks and chances of investing in places where the military is strong. They can make smarter choices by avoiding areas where the economy might not grow well.
Conclusion
Military action has a big impact on the economy. Look at the costs of the post-9/11 wars for example. The United States spent a lot. This huge spending raised the deficit and the national debt. It also means the government will have to pay a lot in interest in the future.
This heavy focus on military spending means the US misses chances to invest in healthcare and infrastructure. This hurts how fast the US economy grows. Plus, military powers in democracies can lead to problems. They can limit choices and put special interests above the economy.
People who invest in companies related to conflicts need to be aware of these issues. They should look into the data and trends. This helps them make smarter choices and do better in the investment world. Knowing about the effects of military action is key to doing well with investments and adjusting to changes in the economy.
FAQ
What is the economic impact of military intervention?
How does military political power affect economic development in democracies?
Why is understanding the economic impact of military intervention important for investors?
Source Links
- https://watson.brown.edu/costsofwar/costs/economic
- https://repository.library.georgetown.edu/handle/10822/709866
- https://www.files.ethz.ch/isn/151162/wp76birchler.pdf
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