War in Iraq
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My economical view on the war in Iraq is that it is stimulating the economy because of the increased government spending. Keeping the same number of troops also affects the job market, as theres a higher demand for workers to replace reservists called to serve in Iraq. Although the war ahs been costly, it has boosted the U.S. domestic product by about half a percentage point since the war started in 2003.
In all the pessimism about the American strategy-shift in Iraq, world financial markets seem to be voting for President Bush and his plan — not against. On the days immediately preceding the presidents speech, as its contents were leaking out, oil prices were plunging and stock prices were rising. Right after the speech, when the contents of the Iraq plan were clear, oil prices continued to fall and share prices hit record highs. Corporate profits are strong, productivity is high, inflation and interest rates are low, and the threat of recession is no where in sight, which makes all this very good for stocks. The high oil prices of the last couple of years have generated huge profits and considerably more production. Oil inventories are high, and the world seems to be awash in oil supply.
The American military build-up, including the strengthened naval presence, not only will provide better security for Iraqs democratically elected government, but also enhanced security for the entire region. Covering slightly more than 20,000 new troops, the revamped military plan will put five American brigades in Baghdad and a sixth in Anbar province. Very simply, the White House believes that political progress and reconciliation in Iraq cannot come without better population security , which means the need for additional American troops and a shift in tactics. I think, the whole war plan has been changed from an American clearing operation, where Iraqi forces would unsuccessfully attempt to hold that cleared ground, to a strategy where American forces will clear, hold, and stay. These are all crucial components of a strategy that, for a change, sounds like a recipe for victory. However, it is critical to the success of the plan that all belligerent parties in the region now be held accountable.
President Bushs overhauled Iraq strategy, including a tougher line on Iran, is being viewed by investors as a plus for security in the Middle East. Two large aircraft carrier groups and 16,000 sailors have been positioned in the Persian Gulf. There