Economic Issue

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Submitted By chrissy3
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Pages 2
The economic issue in the article “Less Bang for a Buck” is that the military excessively spends so much on weapons for the war; it decreases economic sufficiency by investing in excess military ventures. By investing in such ventures it causes several repercussions such as consumption of resources in an immoderate manner. The Government kept spending so much money on the war that they did not think about the long term affects on the economy. The demand for weapons increased while supply decreased which cause the price to increase. Leading to a shift in demand and supply; supply would shift to the left since it decreased. At the rate the military is going, their incentives are more like a punishment to the economy. They had the property rights to the resources which meant that they had the enforceable rights to use the resources of any kind. The resources used to produce the materials were taxed away from the productive population which meant that they would get less of it and the demand would shift to the left. It is basically change in demand versus change in quantity demand. The Government spending was over the top which diverted from making civilian goods. If the Government keeps spending so much money on the war, it may lead to another depression. The economy becomes so fixed upon with its own inefficiency that it loses track on the current state of itself while the value of the dollar continues to drop and fixed institutions slowly get into a bigger…...

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