A new study has confirmed what most economic historians will tell you; long term wars actually destroy your economy: “…the positive effects of increased military spending were outweighed by longer term unintended negative macroeconomic consequences.”

The latest study was done by the Institute for Economics and Peace.  But their study revealed that the War on Terror has been more damaging to the U.S. economy than expected, because it’s the first U.S. war in which taxes collections went down!  This means that while military spending went up, the tax revenues to pay for the military went down!

A long term war, with reduced tax revenues to pay for it has resulted in “…the U.S. having severe unsustainable structural imbalances in its government finances…” and “…major constraints on the economy and limited the scope of options that were available to policymakers…”