Currently America is in a time of bad economy/ inflation...?

Question

..can you say that the war in Iraq is to blame and explain why

replies are greatly appreciated :)

Answer 1

Yes America is in a bad economic period.  But its not all because of George Bush.  Some say he and the FED should not have deregulated the mortgage industry.  I have heard views about that.  Nevertheless, its very controversial and I don't enough to explain whether its true or not.  Even so, I can blab about why the economy is bad.

Mortgages were given out quite a bit in recent years.  There were a bunch of mortgages loaned to people, mainly because of the huge housing boom in 90s-early 2000s.  Companies gave and gave- wrongfully so.  Bush had encouraged people to buy a home, but I place more blame upon those who gave out mortgages.  They gave them to people who couldn't pay them back.  they also used many fraudulent ways to trick people into obtaining them.  Unfortunately, the housing industry, like all good times, came to an end.  House prices weren't doing well and values went down.  So, a $600,000 house for example, would lose like $200,000 value (or 100 thousand).  That was very bad for homeowners.  Not only would they not be able to sell their house for what they paid for it, their mortgage became even bigger.  Lost value means they can't pay for their mortgage back, even if they sold their home (b/c it'd be worth less...!) Unfortunately, this hit people very hard.  So many consumers lost their homes.  Businesses profited but some mortgage/banks failed too.   Fannie Mae for example gave out too many loans and as a result, they got into a deficit.  Yet their heads still benefit.  Anyway, we got a very bad housing market and many people lost their homes.

In addition, there's oil issues.  The price of oil has gone up.  Some countries have restricted oil making.  Others have very high demand for it.  India is one of them.  Their demand for oil along with other places have very high demand and they demanded for more than supply/production could keep up.  Result- oil prices went up due to skyrocketing demand and insufficient supply/oil production.  That has caused problems.  Heating oil in the US costs a lot.  Food prices have soared partially because of oil prices.  And its becoming very costly to fill up for gas.

ALong with gas prices, food prices are going.  A part of the reason is becuase of gas prices.  Another part (gas prices result in higher transportation cost for food so it goes up) is because of some countries limiting exports of food, so there is less.  Also, terrible weather has hurt crops.  So many crops have been decimated and supply of food is down.  That is why prices are high.  And some are hungry.

Inflation is also a problem right now.  The FED tried to save us from a big economic crisis/slowdown.  They did their part...they tried through lowering interest rates.  Their hopes were that they would stimulate the economy.  Sadly, their efforts haven't helped that much- they could have helped some but I don't know if they really have made an impact, it doesn't appear that there is help with decreased interest rates- but they got another problem- inflation.  Increasing the money supply, getting more money into the economy, all of which was done by lowering intersest rates/increasing money supply increased inflation...I know I sound confusing (lowering interest rates causes money to be expanded- the amount of money out there grows and as a result the dollar loses some value).  As a result havoc and some inflation occurred.  Too many dollars were printed.  That led to prices soaring- dollar loses value, it becomes not so strong, and thanks to it losing value, goods cost much more.  Therefore, prices- including oil- became very high.

The Iraqi war has played a part in the economy being bad..some part.  But not as large as oil prices, foreclosures/issues, and the inflation issue.  Nor has it played as large a role in inflation (as interest rates there) or food prices.  It has played some part though in the economic problem, just not as big as others.  The Iraqi war has cost many lives, a lot of money, and may have caused gas prices to go up somewhat (tension causes prices to rise).  They (battle, war) have gotten us into bigger deficit and more national debt too...and that's a problem.  It lowers the value of the dollar.  That leads to more inflation.  However, I see the deficit and debt as more long range problems and they were probably contributed more by Bush's tax cuts to the people who make a lot of money.  By giving tax cuts to very high-income people, we got into a bigger deficit- not enough revenue is recieived in comparison to big spending.  Bush was not fiscally responsible, which helped cause a big national debt (bigger than other years) and high deficits.

However, Bush can't be blamed for all problems.  And ending the Iraqi war now won't save us economically- savings won't be so high and in a human sense, it'd be terrible if we left quickly now or if we carefully withdrew without providing enough security strength- so many people would die and the country would fall into chaos.  I hope things get better and problems solved- we need to invest in alternate energy to reduce oil prices [combat high oil prices and low oil production].

Answer 2

Labor unions have forced businesses to go overseas.

Most everything you buy now is made in China.

The Unions keep the cost of living high because they demand high wages, increases, benefits, and on and on or they'll strike and bankrupt a company.

The grocery stores - union, the transportation of goods - union, the ports - union, the teachers and professors - union (education is outrageously expensive).  If it's made in America - it will cost more because of union involvement.

Answer 3

Main reason is Oil prices , second is war , thired is leader.

some time leader start the war for Oil . and do not realise about the worlds Economy  . any how Hopefully it will fine . very soon ,

Have a good day .

Answer 4

Yes, because the war has cost us a fortune!!!

Now Bush is trying to bleed our wallets to help pay for this war.

$560,000,000,000

Answer 5

No it isn't over spending by the bush administration, climate change, and the capitalism of India and china are the main drivers in this right now. Not saying that it is helping at all i bet it burnt through a couple trillion but even if we didn't go in we'd still be in a pretty bad place.