The Cost of War - Essay Example

The Cost of War What is the cost of war? I opened the discussion by posing this question to my colleagues. Tom: Yes, wars cost a lot of money to both the victor and the losers. Although most wars have neither victors nor losers, all the parties involved in a conflict have to pay heavy costs in order to maintain the war. For example, the current war in Afghanistan and Iraq has cost the countries millions of dollars. Money needed to sustain the war by supplying military hardware and ammunition is the cots of war.

America also incurs the cost of maintaining the combatant and other military personnel by paying their salaries and allowances. Sam: I think that you are right but you perspective on the issue is deficient of substance. As an economic student, the cost of war does not end in the battlefield but it also affects those who are not involved with the war. The question here is the cost of war and who bear the cost. Is it America, the jihadists or the world? This perspective will enable you to explore the issue from an economist point of view.

Global economy is indicated by various parameters. Such parameters are the only tool that we can use to determine the cost of war.Jim: I think Sam is heading in the right direction since the issue of cost of war should be linked with the question of who bears the cost. It is unfortunate that since the end of World War II, most wars have been between America and the so called the Arab world. The Asian continent or the Arab world plays a big role in the world’s economy. Nearly 50% of the global oil comes from the Arabian countries particularly Iran, Iraq, Kuwait and Saudi Arabia that.

These countries have either been involved or affected by the war. This proves why global oil prices escalate whenever there is a conflict involving the Arab world and the Western League. Inflated oil prices increases the cost of production since oil is used in various stages of production such as manufacturing and transportation. High oil prices are reflected in consumer products as increase in retail prices. I consider this to be the actual cost of war”Peter: “your argument is correct however, you are more biased to answering the question of who bear the cost of war instead of the cost of war.

Wars happen in reality and therefore analysis needs a realistic focus. The cost of war is the immediate impacts of war that changes the financial status of the parties involved in war. In this case the cost of war will be evaluated from the cost of damages resulting from a conflict and the cost of maintaining combatants in the battlefield or maintaining a frontline”.Simon: “I think the issue is to analyze the cost of war, Peter is right but his focus is too myopic. I concur with Jim’s approach that the cost of war should be analyzed from who bears the cost instead of analyzing the issue from the immediate consequences of the war.

Wars not only affect those involved with the conflict but the entire globe and, therefore the cost of war should consider these factors. Energy crisis, high interest rates, the declining price of the dollar and high cost of living is the cumulative cost of war. The citizens are the ones who bear the cost of war. The extra amount of money needed to sustain the normal livelihood of a person, is the cost of war.”I think we can conclude the discussion by saying that the cost of war is the effects of on the global economy.

The extra financial effort required to sustain global economy is the cost of war. Such cost is not only met by America nor Afghanistan but the whole world.