**__The Economic Costs of War__**

What are Economic Costs of War?

Economic Costs of War - pertains to the production, distribution, and use of wealth, and commodities as it relates to wars.

Projected Costs for the United States in its war in Iraq

Although the economy might be sparked during war time recession usually occurs when the war ends

History of Economic Costs of War

In the years following World War I Germany was set on the hyperinflationary track after having to borrow lots of money in order to continue its campaign. However, during the war the Reichsbank (Central Bank of Germany) stopped pinning its currency against the gold. Since there was no legal limit as toward how much money could be printed, Germany ended up going down a hyperinflationary spiral where the amount of money in circulation increased by 4 fold. This devaluated the amount a person could buy, thus making the currency relatively useless. It was this recession that is believed to have led Germany back onto the warring path during World War II.

You should care about this cost of war because it effects everyone. For example high taxes, mis allocation of resources, and eventual depression can result from a long, high costing war. After WWII Europe fell into depression because of the large economic costs associated with the war.

Works Cited
Peninsula/south Bay Peace, comp. "US Gov't Accomplishments." South Bay Mobilization. 3 Jan. 2005. South Bay Mobilization. 11 Dec. 2007