Re: [nukkad] Is US Economy already in Recession?

["Dr.M.C. Gupta" <>]

Here is a layman's version, based on what I have read feom various sources
in this very context of US recession and war--

1. Recession means there less money in the market is flowing in from
investors / consumers.

2. US economy is driven by consumerism. There is consumer demand for goods
>> more goods manufactured >> more raw material produced, more factories
work, more people employed >> economy gets a boost.

3. War >> more weapons produced >> more factories work.

Along with that, once US joins the fray and war escalates, other countries
need to buy weapons from weapons suppliers urgently. US, being weapon
manufacturer and supplier, as well as supplier of ancillary war goods
[vehicles, ships, planes, reconnaisance devices etc.], directly benefits
from this.

Once the machines that were idle due to recession start churning again, the
wheel of economy moves faster and recession recedes.

MCG
23 January 2008

======================================

On 1/23/08, Ravi Menon  wrote:
>
> To say that it is a diversionary tactic yes, but to say that going to
> war helps pull one out of recession I find a strange logic. But then
> economics is not really an exact science. I would appreciate some
> enlightenment on war putting an end to recession.
> Ravi
>



-- 
Prof. M C Gupta
MD (Medicine), MPH,  LL.M.,

Advocate & Health and Medico-legal Consultant

mcgupta44@gmail.com
www.writing.com/authors/mcgupta44
http://mcgupta44.blogspot.com/


---


[This message contained attachments that have been removed.]


----------------------------------------------------------------------------
There would be no society if living together depended upon understanding 
each other. -Eric Hoffer, philosopher and author (1902-1983)
----------------------------------------------------------------------------


------------------------------------------------------------------------------
To join/leave, use the form at: http://www.mumbai-central.com/nukkad/#options
This list is archived at: http://www.mumbai-central.com/nukkad/archive.html