Effects Of A War With Iraq

Effects Of A War With Iraq

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The question of a near future war with Iraq is on everyone?s minds these days. You can?t open a newspaper or watch the news without hearing about it. With the call up of thousands of American reservists this crisis has taken on a personal note. This paper will discuss the effects of a war with Iraq on the American economy. An American attack on Iraq will most definitely affect the American economy. One of the main reasons for this is because the United States would have to bear the cost of the war, and the brunt of any oil price shock or other market disruptions. If oil supplies are disrupted, as they were during the 1991 gulf war, and prices rise sharply, the economic effects would be felt by the entire world. This isn?t going to be anything like the previous war with Iraq in 1991. During that war the U.S. was spending almost $500 million

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