Shomoi Francis Mr. Joseph English 12 26 November 2012 War: Effect on Economy War has influenced economic history profoundly across time and space. Winners of wars have shaped economic institutions and trade patterns. Wars have influenced technological developments. Above all, recurring war has drained wealth, disrupted markets, and depressed economical growth. Wars are expensive (in money and other resources), destructive (of capital and human capital), and disruptive (of trade, resource availability, labor management). Large wars make up severe shocks to the economies of participating countries.Despite some positive aspects of short-term stimulation and long-term destruction and rebuilding, war generally impedes economic development and undermines wealth. Several specific economic effects of war recur across historical eras and locales. Next inflation, the most consistent short-term economic effect of war is to push up prices, and consequently to reduce living standards.
