Conditions and consequences price war

Winners of wars have shaped economic institutions and trade patterns. Wars have influenced technological developments.

Conditions and consequences price war

BREAKING DOWN 'Price War'

However, the withdrawing of troops, including replacement of equipment and assets from the bases, and the medical treatment and disability claims of US veterans, will increase the cost of the war. Christian Science Monitor Iraq: September 21, The US has promised to withdraw troops and contractor personnel from Iraq by the end of the year, as required by a security agreement between Washington and Baghdad.

However, the number of State Department-hired private security personnel and personnel from the Deparment of Defense DoD that will remain is unclear. The DoD is facing the complicated task of withdrawing troops, contractors, equipments and other assets from the bases, while at the same preventing attacks and looting of US government assets.

According to a Government Accountability Office report, the DoD and State Department are not equiped to deal with this situation and a third of the army equipment could be lost. However, under the US occupation, that system has drastically deteriorated.

Students in Iraq's schooling system, once known as the best in the Middle East, are failing in their studies because of harsh conditions caused by the invasion. This Inter Press Service article argues that many students, whose fathers are either dead or detained, are abandoning their studies to become their families' bread winners.

Furthermore, other students cannot even attend school due to a lack of security. Many Iraqis see the bilateral treaty as a way to prolong the US occupation indefinitely and fear the government will approve the contract in return for marginal concessions.

Iraq's financial reserves remain in the US Federal Reserve Bank as a consequence of the international sanctions against Saddam Hussein in the s.

The costs of the war to have so far exceeded the administration's original estimates ten fold. With no move toward immediate withdrawal- the cost of the Iraq war will continue for decades to come.

Iraqis' Quality of Life Marked By Slow Gains, Many Setbacks November 30, According to an unpublished US military poll on the quality of life in Iraq, Iraqis are unsatisfied with the provision of basic services, particularly water, gas, electricity and sanitation systems.

The poll suggests that overall the conditions are worsening with some areas of Iraq receiving only 11 hours of electricity per day. The bill prevents the White House from using funds to construct permanent bases in Iraq or assert US control over Iraq's oil. However, commentators say President Bush will veto the bill.

Congressional Democrats claim that the bill responds to the concerns of US citizens about the length and the costs of the war.

What is a 'Price War'

Washington Post Progress Report: The author warns that traditional farming methods will be lost with the introduction of large agribusiness into the country. Meanwhile, more and more US corporations "are cashing in" on lucrative military contracts in Iraq and Afghanistan each quarter.

These gains accrue directly to the companies and not the US military, and therefore do not offset any of the expanding costs of the war. Iraq had suffered years of turmoil as a result of economic mismanagement under Saddam Hussein, a war with Iran and the ensuing UN-imposed sanctions.

But this corporate invasion aggravated Iraqi citizens' daily struggle to make ends meet, while enriching the war profiteers. This article describes the quagmire in Iraq as "an extreme example of the violence that underpins the wider project of neoliberalism. Although the US occupation in Iraq has not lasted as long as the Vietnam War, the price tag is approaching a record high and the spending is taking place much faster than in the past.

Yet the latest payment will not go to war victims, but to large US-owned corporations operating in Kuwait to compensate them for "lost profits" and a "decline in business.

This Independent piece points out that, despite Hussein's absence from power, the Iraqi people continue to pay for the crimes of their former dictator. Despite the world's third largest oil reserves, a well- educated work force, an abundance of water and other valuable resources, Iraq's economy has suffered.

Dire security conditions, inefficiency and endemic corruption have increased poverty and reduced employment. Inflation has soared since the invasion, "sapping the living standards of Iraqis as they cope with bombs and sectarian killings which kill every day. The author reveals US plans to control the industry through Order 81, a provision promulgated by US Administrator Paul Bremer in the early days of the occupation, to protect the interests of US agribusiness.

The result diverts profits away from local farmers, and will inevitably lead to increasing food prices for the Iraqi people, privatization and the elimination of subsidies.

Conditions and consequences price war

For a country suffering the humanitarian consequences of a decade of economic sanctions and the ongoing US occupation, food rations and fuel subsides have helped millions of Iraqis to survive. Despite rising unemployment, malnutrition, and inflation, IMF officials have pointed to Iraq's growing economy as a sign of "success.

Rather, as Professor Michael Schwartz points out, "death, destruction, and disorganization" in Iraq represent a "direct consequence" of US efforts to forcibly restructure Iraq's economy and society.

In one case involving the Al Fatah pipeline north of Baghdad, US forces deliberately destroyed the pipeline to "stop the enemy," then contracted Halliburton subsidiary KBR to overhaul the entire system, rather than relying on the experienced state oil company to make repairs. The three years of combat have strained the equipment, therefore repairing, rebuilding and replacing it gets increasingly expensive.

Cut in Food Rations Hurting Poor Iraqis April 3, Iraq's poorest citizens suffer the most from economic restructuring and the elimination of basic subsidies. Backed by the US and the International Monetary Fund, the Iraqi government has begun eliminating food rations as part of the transition to a free market economy.

Nearly all Iraqis, approximately 96 percent, benefit from food subsidies — a result of crippling economic sanctions upheld by the US and UK.

According to the UN's World Food Program, one fourth of the Iraqi population depends on food rations for survival, and cannot meet their food requirements without them. Nestled in the fine print, the agreement forces Iraq to pass an oil law by the end of and allow the IMF to help draft the law.The Pros and Cons of a Price War.

Published on February 27, Craig Ford unpacks the pros and cons of price wars: Under these conditions, there is a large incentive for a competitor to cut. While US congressional budget data estimate the war's cost at $ billion through , Stiglitz and Bilmes put the war's total cost at $2 trillion. Their detailed analysis includes long-term costs like ongoing healthcare for wounded troops and the war's related effects on .

A price war is a period in which multiple firms competing within the same market will react to the other firms lowering of price by lowering their own price. They have short-term and long-term advantages and disadvantages. Aug 08,  · A price war is a competitive exchange among rival companies who lower prices to undercut one another.

A price war may be used to increase revenue in the short term, or as a longer-term strategy to. A price war is a period in which multiple firms competing within the same market will react to the other firms lowering of price by lowering their own price.

They have . CONSEQUENCES of WAR on the U.S. ECONOMY The government needed to implement price and wage controls in response to inflation which • The Afghanistan and Iraq Wars were accompanied by weak economic conditions right from their.

Economic Consequences