[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-325675-105":59,"doc-detail-325675-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","the-effect-of-war-expenditures-on-us-output","The Effect of War Expenditures on U.S. Output","","Analyzes how temporary war-related increases in U.S. government spending influence output and real interest rates. Contrasts baseline costs that would occur regardless of troop location with incremental costs tied to Operation Desert Shield and the subsequent combat phase. Simulation results indicate the Iraq war would have only a minimal effect on the economy, even under the most pessimistic scenario, while detailing estimated total and yearly expenditure impacts.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/the-effect-of-war-expenditures-on-us-output/325675/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/the-effect-of-war-expenditures-on-us-output/325675.png","ImageObject",300,407,{"name":92,"@type":93},"Levi","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":39},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What is the main question addressed by this Economic Commentary?","Question",{"text":112,"@type":113},"Whether war-related temporary increases in government spending would stimulate the U.S. economy through their effects on real interest rates and output.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How do the authors separate war costs in their assessment?",{"text":117,"@type":113},"They distinguish baseline costs incurred regardless of troop stationing from incremental costs associated with transporting, maintaining equipment in the desert, replacing parts, and additional training and combat-related services.",{"name":119,"@type":110,"acceptedAnswer":120},"What do the simulations conclude about the war’s economic impact?",{"text":121,"@type":113},"The war with Iraq is estimated to have only a minimal impact on the economy, even in the most pessimistic scenario described.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},325675,1790794502,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":39,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},7971461740909,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","by Charles Carlstrom,Jagadeesh Gokhale,andSharon Parrott  \nTne warwith Tng hs become themost extensive U.S.military involvementsince Vietnam.Although the duration andthe political ramifications of the operationare still unclear,it is likely that the UnitedStates will bear a substantial share of thewar's financial cost,placing an additionalburden on the federal budget.Aside fromthe obvious concems about war's devas-tation and the tragic cost in human lives,policymakers have also expressed con-cem about the impact that the war willhave on the US.economy.  \nMany analysts believe that the economywill be adversely affected because thecost of the war will reduce consumptioneither by raising taxesor by increasingthe federal budget deficit.Some cite theoilprice shock that followed Iraq's inva-sion of Kuwait and the subsequent dropin consumer spending as additional fac-tors working against the economy.How-ever,others insist that the stimulativeeffect of increased military expenditurescould help to pull the economy out ofits current downtum,noting that warshave typically been associated withhigh output  \nThis Economic Commentary examinesthe effects of temporary war-related in-creasesin govemment spending on out-put and real interest rates in the UnitedStates.The mode that we use differssignificantly in its approach and struc-ture from more frequently used large-scale econometric models.Our simula-  \n# The Effect of WarExpenditures on U.S.Output\n\ntions indicate that the war with Iraq willhave only a minimal impact on theeconomy.  \n## ■ Costs of the Current\n\nMilitary Buildup  \nIn assessing how the cost of OperationDesert Storm will affect the U.S.econ-omy,it is necessary to separate theadditional cost of war from the cost ofongoing military operations that theUnited States would have incurred evenif troops had not been called to the Per-sian Gulf.Because the length of thewar is uncertain and the financial sup-port of our allies is unclear,current costestimates are tenuous at best.  \nThecost of the war can be broken downinto two components:baseline costs andincremental costs.Baseline costs are main-ly those that would be incurred regardlessof where our troops are stationed.For theU.S.military unts deployed under Opera-tion Desert Storm,this amount has beenestimated at $105 billion for 1991.'Be-cause these costs would have been real-ized even in the absence of the PersianGulf crisis,they are not fully attributableto Operation Desert Storm and thereforeare not included in our estimates of thetotal cost of the war.However,given thepolitical developments in Eastem Eu-rope and the pressures to reduce the fed-eral budget deficit,defense allocations  \nFebruary 15,1991  \nWill Persian Gulf War expendituresstimulate the U.S.economy?ThisEconomic Commentary looks at howwar-related temporary increases ingovernment spending affect real in-terest rates and output.The authorsfind that even under the most pes-simistic scenario,the Persian GulfWar's impact on the economy shouldbe minimal.  \nfor fiscal year 1991 might have been cutin the absence of the crisis.  \nUnder Operation Desert Shield(the firstphase of the military buildup),incre-menta costs included those associatedwith transporting troops and equipment,maintaining equipment in the desert en-vironment,replacing spare parts,andproviding additional training for combatunder foreign conditions.The Comp-troller General of the United Statesrecently placed the incremental cost ofmaintaining 450,000 troops in a combat-ready position at $34 billion per year.  \nNow that hostilities have started,the in-cremental costs related to actual combatare undoubtedly higher,but also moredifficult to estimate.Additional costsstem from increased medical and logisti-cal support services and from the re-placement of destroyed ammunition andequipment.The incremental costs of  \nactive war could be six times the cost ofsimply maintaining combat-ready troops.This figure is consistent with daily costestimates of between $500 mill","cbCaicEIY66enzdi","https://ap.wps.com/l/cbCaicEIY66enzdi","pdf",1246959,"English","# The Effect of War Expenditures on U.S. Output\n## Costs of the Current Military Buildup","[{\"question\":\"What is the main question addressed by this Economic Commentary?\",\"answer\":\"Whether war-related temporary increases in government spending would stimulate the U.S. economy through their effects on real interest rates and output.\"},{\"question\":\"How do the authors separate war costs in their assessment?\",\"answer\":\"They distinguish baseline costs incurred regardless of troop stationing from incremental costs associated with transporting, maintaining equipment in the desert, replacing parts, and additional training and combat-related services.\"},{\"question\":\"What do the simulations conclude about the war’s economic impact?\",\"answer\":\"The war with Iraq is estimated to have only a minimal impact on the economy, even in the most pessimistic scenario described.\"}]","The Effect of War Expenditures on U.S. Output | PDF",1789971124,13]