Is military spending good for the economy?

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Two of the most popular myths about the United States are probably the presence of UFOs at Area 51 and the belief that involvement in geopolitical conflicts helps keep the economy afloat.

Moreover, a drop in sales of all other products and services offsets the positive effect. For example, it is estimated that the wars in Afghanistan and Iraq cost the United States between 5% and 9% in lost exports. From an economic point of view, investments in armaments are investments in nowhere. For example, money earmarked for bridge construction will boost the construction sector, and the bridge will contribute to economic development for many years to come.

 

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