How does war affect the economy?  

Expert Answers

An illustration of the letter 'A' in a speech bubbles

War can have a positive or a negative effect on the economy. If a country is in a depression, war can stimulate the economy. This happened with World War II. It was World War II that got us out of the Great Depression. When a country goes to war, many...

Unlock
This Answer Now

Start your 48-hour free trial to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.

Start your 48-Hour Free Trial

War can have a positive or a negative effect on the economy. If a country is in a depression, war can stimulate the economy. This happened with World War II. It was World War II that got us out of the Great Depression. When a country goes to war, many jobs are created. People are needed to work in the factories that are making the supplies for war. Soldiers are needed to fight. A lot of money is pumped into the economy. This may cause the economy to grow.

However, war can be harmful to an economy. If a war goes on for many years, it may become a drain on the country financially. Wars are very expensive to fight. The longer a war is being fought means more money is going to the war effort instead of developing other aspects of the economy. Too much spending on war can lead a country into significant debt. Shortages of products may occur. This could lead to inflation. If a country can’t afford to pay to fight a war, the economic system could collapse.

Thus, war can have a mixed effect on the economy. Depending on circumstances, it could stimulate it or sink it.

Approved by eNotes Editorial Team