Does war create recession and are the two directly linked?

Question

Does war create recession and are the two directly linked?

Answer 1

No, quite the reverse in fact .. (who do you think makes all the arms, ammunition and coffins ??)

Answer 2

yes, it does.

you spend too much money which is not for investment, no return at all, even with a long term perception. that is heading a bankruptcy. before the bankruptcy, there is a stage for recession. the money you spent on the war, otherwise, should be on the financial markets, housing investment or other job opportunities, on which the government should constantly focus to sustain the constant growth. The economy can not grow by itself. That is why we need government and economists and investment as well. Now the government pour the precious resources into the stupid wars which only benefit military industry. the military industry did not invest very much with the earnings to increase the capacities, but reproduce the necessities, as the war is not the cold war. The money actually were reaped by the richers.  that is just like using other industries' blood to nurture a few b******s, and burn fireworks for a show. So the lack of nurturing other industries caused the collapse when a single brick got rotten.

If it is not the war, we couldn't find any reason.

Answer 3

I don't think it necessarily does.  

I think a lot depends on how quickly the war can be resolved, how much it costs, and whether or not your side wins of course.

Now for example Bush's war on terror is fairly expensive, and so vague in its objectives that it will probably never be resolved, unless perforce if the money runs out.  I could see that kind of "war" having some negative effects on the economy in due course.