[QUOTE="coolbeans90"]
[QUOTE="Aku101"]
Cool someone else knows economics in this thread, this will be alot easier:
What you said disproves nothing I said previously, but i'm sure you acknowledge that. You are correct on all points, but you are not considering the positive externalities gained from the iraq campaign. While the trillion dollars could be spent boosting the economy, you can't put a dollar value on: the non-use value of an iraqi democracy which is enjoyed by american citizens.
The most important thing gained from the iraq campaign is the lower production costs which spurs economic growth. Which always has positive effects in the long-run.
Aku101
Care to name these positive externalities which would have incentivized the U.S. to be gained from Iraq? Sure the Iraqi people benefit from democracy in the long run, etc. But it is the Iraqis who benefit from this, and it doesn't strengthen the oil motive explanation. How in the short-term would you posit U.S. benefits from this, all factors considered? The U.S. certainly didn't make gains on account of oil. The trillion dollars spent on the war wasn't exactly a series of expenditures designed around economic stimulation.
It has positive effects in the long run, but do these long-term benefits outweigh the exorbitant costs in the short term? After all, "in the long run, we're all dead."
Positive externalities:
-multiplier effetcs in other countries' economies which in turns yields positive results for the US
-non-use value obtained from promoting democracy
-political clout gained from iraq campaign
these are just some of the positive externalities gained which you cannot put a dollar value on.
Economic growth always happens in the long-run even if in the short-run it does not seem like it. Easy example: tradeable pollution permits are introduced, cost-effectiveness is obtained over time with the trading of permits until MACs of all firms are equal, economic sustainability rises, PPF shifts to the right, economic growth happens in the long run.
These multiplier effects take a while to recover a country from a war, let alone rise above the prior status-quo.
Democracy, fair point.
Political shenanigans, also a fair point.
Oil doesn't seem to be the motive.
Yes, economic growth always happens in the long run. However, the actual point of discussion is whether or not it would have been greater than other courses of action, ceteris paribus.
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