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The Military-Industrial Compex is Ruining the Economy

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opednews.com

Levin recalled Cheney's assertions that a senior Iraqi intelligence officer had met Mohammad Atta, the leader of the 9/11 hijackers, in the Czech Republic capital of Prague just months before the attacks on the World Trade Center and the Pentagon.

The FBI and CIA found that no such meeting occurred.

In other words, top Bush administration officials not only knowingly lied about a non-existent connection between Al Qaida and Iraq, but they pushed and insisted that interrogators use special torture methods aimed at extracting false confessions to attempt to create such a false linkage. See also this and this.

Paul Krugman summarized eloquently summarized the truth about the type of torture used:

Let's say this slowly: the Bush administration wanted to use 9/11 as a pretext to invade Iraq, even though Iraq had nothing to do with 9/11. So it tortured people to make them confess to the nonexistent link.

There's a word for this: it's evil.
But since this essay in on dollars and cents, the important point is that terrorism is bad for the economy.


Specifically, a study by Harvard and NBER points out:
From an economic standpoint, terrorism has been described to have four main effects (see, e.g., US Congress, Joint Economic Committee, 2002). First, the capital stock (human and physical) of a country is reduced as a result of terrorist attacks. Second, the terrorist threat induces higher levels of uncertainty. Third, terrorism promotes increases in counter-terrorism expenditures, drawing resources from productive sectors for use in security. Fourth, terrorism is known to affect negatively specific industries such as tourism.
The Harvard/NBER concludes:
In accordance with the predictions of the model, higher levels of terrorist risks are associated with lower levels of net foreign direct investment positions, even after controlling for other types of country risks. On average, a standard deviation increase in the terrorist risk is associated with a fall in the net foreign direct investment position of about 5 percent of GDP.
So the more unnecessary wars American launches, the more innocent civilians we kill, and the more people we torture, the less foreign investment in America, the more destruction to our capital stock, the higher the level of uncertainty, the more counter-terrorism expenditures and the less expenditures in more productive sectors, and the greater the hit to tourism and some other industries.

Moreover:
Terrorism has contributed to a decline in the global economy (for example, European Commission, 2001).
So military adventurism and torture, which increase terrorism, hurt the world economy. And see this.

For the foregoing reasons, the military-industrial complex is ruining the economy.

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George Washington


As a political activist for decades, I have rejoiced in victories for the people and mourned in defeats. I chose the pen name "George Washington" because - as (more...)
 

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Excellent stuff by John Little on Sunday, Jan 10, 2010 at 1:32:55 AM
ending wars and closing bases would REALLY stimulate the eco by martinweiss on Sunday, Jan 10, 2010 at 3:22:13 AM
MIC ruining the economy? by Sister Begonia on Monday, Jan 11, 2010 at 9:21:52 AM