Description
This is a presentation about detailed explaination of of impact of war on fuel prices and global economy
?
? ? ? ? ? ?
Expenditure on Recent Wars
Global Military Spending Cost of Iraq War The Impact of Higher Military Spending on the World Economy Effect of Oil Prices on the global economy Effect of War on Global Oil Prices A Different Perspective
War American Revolution War of 1812 Civil War Civil War, Confederacy World War I World War II Korean War Vietnam War
Americas cost of War $1.8 billion $1.2 billion $45.2 billion $15.2 billion $253 billion $4.1 trillion $320 billion $686 billion
Percent of GDP N.A. 2.2 percent 11.3 percent N.A. 13.6 percent 35.8 percent 4.2 percent 2.3 percent
Gulf War
Iraq war Afghanistan/Global war on terror Post 9/11 domestic security
$96 billion
$648 billion $171 billion $33 billion
0.3 percent
1 percent 0.3 percent 0.1 percent
Rank
Country United States (FY 2008 budget) China (2004) Russia France (2005) United Kingdom Japan (2007) Germany (2003) Italy (2003) South Korea (2003) India (2005 est.)
Military budget
1.
2. 3. 4. 5. 6. 7. 8. 9. 10. World total (minus the US)
$623bn
$65bn $50bn $45bn $42.8bn $41.75bn $35.1bn $28.2bn $21.1bn $19bn $1,100bn $500bn
World total military expenditures (2004 est)
?
The economic costs to the United States of the wars in Iraq and Afghanistan so far total approximately $1.5 trillion
The wars in Iraq and Afghanistan have already cost the typical family of four more than $20,000 War in Iraq is financed by debt thus America is facing huge future interest costs Raised oil prices in the U.S. by between $4 and $5 a barrel because of the war The $151.1 billion spent by the U.S. government on the war could have cut world hunger in half and covered HIV/AIDS medicine, childhood immunization and clean water and sanitation needs of the developing world for more than two years
?
?
?
?
5 years
Real GDP (billions 2000$ 80.8
10years
-13.3
15 years
-11.3
20 years
-42.1
GDP Deflator (percentage points)
0.6%
0.6%
0.7%
0.7%
?
The initial impact of higher military spending on GDP is positive In the longer run the higher inflation rate helps to push up the long-term interest rate
Higher real interest rates are also projected to lead to a higher dollar, which in turn makes U.S. exports less competitive and imports cheaper
?
?
?
Oil Prices have a large impact on the consumer spending but has a very small effect on the consumption of gasoline. The effects are felt in consumption of other items.
Short term prices for gasoline, however, appears to be relatively “inelastic”—that is, when prices change, there is relatively little change in the quantity demanded.
?
?
Robert J. Barro is of the opinion that the war against terror will boost the economy.
The reason being that the war being expansionary in nature will help the U.S. economy to recover from the economic slowdown in that period. Military Keynesianism.
?
?
?
It is often argued that military spending on research and development (R&D) increases the productivity of the civilian sector by generating new infrastructure and advanced technology.
? ? ? ? ? ? ?
? ? ?
? ?
http://wikipedia.org/ http://www.bizjournals.com/memphis/stories/2003/03/24/story5.html http://www.wtrg.com/prices.htm http://zfacts.com/p/361.html http://tinyurl.com/7e4td.html http://www.economics.harvard.edu/faculty/barro/files/bw01_11_05.pdf http://www.thehindubusinessline.com/2003/09/23/stories/200309230008 0900.htm http://www.economics.harvard.edu/faculty/barro/files/bw01_11_05.pdf http://en.wikipedia.org/wiki/Military_budget_of_the_United_States http://economics.about.com/od/warandtheeconomy/a/warsandeconomy _3.htm http://mondediplo.com/2008/02/05military The Economic Impact of the Iraq War and Higher Military Spending by Dean Baker
doc_231137923.pptx
This is a presentation about detailed explaination of of impact of war on fuel prices and global economy
?
? ? ? ? ? ?
Expenditure on Recent Wars
Global Military Spending Cost of Iraq War The Impact of Higher Military Spending on the World Economy Effect of Oil Prices on the global economy Effect of War on Global Oil Prices A Different Perspective
War American Revolution War of 1812 Civil War Civil War, Confederacy World War I World War II Korean War Vietnam War
Americas cost of War $1.8 billion $1.2 billion $45.2 billion $15.2 billion $253 billion $4.1 trillion $320 billion $686 billion
Percent of GDP N.A. 2.2 percent 11.3 percent N.A. 13.6 percent 35.8 percent 4.2 percent 2.3 percent
Gulf War
Iraq war Afghanistan/Global war on terror Post 9/11 domestic security
$96 billion
$648 billion $171 billion $33 billion
0.3 percent
1 percent 0.3 percent 0.1 percent
Rank
Country United States (FY 2008 budget) China (2004) Russia France (2005) United Kingdom Japan (2007) Germany (2003) Italy (2003) South Korea (2003) India (2005 est.)
Military budget
1.
2. 3. 4. 5. 6. 7. 8. 9. 10. World total (minus the US)
$623bn
$65bn $50bn $45bn $42.8bn $41.75bn $35.1bn $28.2bn $21.1bn $19bn $1,100bn $500bn
World total military expenditures (2004 est)
?
The economic costs to the United States of the wars in Iraq and Afghanistan so far total approximately $1.5 trillion
The wars in Iraq and Afghanistan have already cost the typical family of four more than $20,000 War in Iraq is financed by debt thus America is facing huge future interest costs Raised oil prices in the U.S. by between $4 and $5 a barrel because of the war The $151.1 billion spent by the U.S. government on the war could have cut world hunger in half and covered HIV/AIDS medicine, childhood immunization and clean water and sanitation needs of the developing world for more than two years
?
?
?
?
5 years
Real GDP (billions 2000$ 80.8
10years
-13.3
15 years
-11.3
20 years
-42.1
GDP Deflator (percentage points)
0.6%
0.6%
0.7%
0.7%
?
The initial impact of higher military spending on GDP is positive In the longer run the higher inflation rate helps to push up the long-term interest rate
Higher real interest rates are also projected to lead to a higher dollar, which in turn makes U.S. exports less competitive and imports cheaper
?
?
?
Oil Prices have a large impact on the consumer spending but has a very small effect on the consumption of gasoline. The effects are felt in consumption of other items.
Short term prices for gasoline, however, appears to be relatively “inelastic”—that is, when prices change, there is relatively little change in the quantity demanded.
?
?
Robert J. Barro is of the opinion that the war against terror will boost the economy.
The reason being that the war being expansionary in nature will help the U.S. economy to recover from the economic slowdown in that period. Military Keynesianism.
?
?
?
It is often argued that military spending on research and development (R&D) increases the productivity of the civilian sector by generating new infrastructure and advanced technology.
? ? ? ? ? ? ?
? ? ?
? ?
http://wikipedia.org/ http://www.bizjournals.com/memphis/stories/2003/03/24/story5.html http://www.wtrg.com/prices.htm http://zfacts.com/p/361.html http://tinyurl.com/7e4td.html http://www.economics.harvard.edu/faculty/barro/files/bw01_11_05.pdf http://www.thehindubusinessline.com/2003/09/23/stories/200309230008 0900.htm http://www.economics.harvard.edu/faculty/barro/files/bw01_11_05.pdf http://en.wikipedia.org/wiki/Military_budget_of_the_United_States http://economics.about.com/od/warandtheeconomy/a/warsandeconomy _3.htm http://mondediplo.com/2008/02/05military The Economic Impact of the Iraq War and Higher Military Spending by Dean Baker
doc_231137923.pptx