The Economic Impact of War: A Double-Edged Sword
War, whether internal or international, leaves an unremovable mark on a country’s economy. "War does not determine who is right — only who is left." - Bertrand Russell. War has multi aspect effects and devastating consequences on people.
Negative Effects
Infrastructure Damage:
War destroys roads, bridges, factories and homes. Rebuilding them requires significant resources and funds from other essential sectors in a country. The destruction of Aleppo during the Syrian civil war is an example of it.
Decline in Working Population:
Casualties and displacement reduce the labor force which affects productivity. World War II led to millions of deaths and displaced people and can be viewed as a lesson for us to learn about the negative side of war on the public.
Inflation:
War necessitates increased government spending that can lead to inflation. For example, Zimbabwe’s hyperinflation during the Rhodesian Bush War.
Rise in Debt:
Governments borrow heavily during war which can result in higher public debt. The U.S. national debt surged during the Iraq and Afghanistan wars is a great example of this effect.
Disruption to Economic Activity:
Trade, investment and production are meant to suffer due to conflict. The ongoing conflict in Yemen has devastated its economy and shows how war can destroy a country’s economy.
Other Effects
Although war has many negative impacts, it has a few other effects too. Such as:
Demand Creation:
War can create demand for supplies and services related to defense, reconstruction and medical supplies. For instance, military contracts help industries like aerospace and technology improve and advance.
Employment and Innovation:
War-related production creates job opportunities and helps technological advancements. An example for this effect can be that World War II improved innovations in aspects like radar, aviation and medicine.
Profits for Businesses:
Some companies can profit from war-related contracts such as defense contractors benefit during armed conflicts.
Opportunity Cost
While war spending creates demand, it comes at an opportunity cost. Resources dedicated to war could have been used for education, healthcare or poverty alleviation. The Vietnam War diverted funds from social programs and is an example of how the funds that could have been used to have positive impacts in the country, are utilized in war.
War has multi side effects. Its devastating impact on a country or society is beyond balance sheets or GDP figures. Let’s remember that war causes lives to be lost, dreams to be gone, families to be shattered, cultures and communities to be destroyed. It has non removable effects and can affect generations.
How AI Affects the Economy around the World
Artificial Intelligence (AI) has raised many concerns around the world since its entrance into the industry and public use. There are many admires and positive comments on its intelligence and criticisms and negative points about its impacts on the working industry. Many people believe AI is a threat for them and their lifelong careers and may replace humans in a few fields. According to experts, the majority of jobs endangered by AI are the common occupations such as entry-level admin roles, customer service reps, graphic designers and many more. However, we need to remember that it is not yet certain and 100% probability. On the other hand, AI is causing many new job opportunities to be created or promoted such as computer scientists, data analysts, AI and machine learning specialists, etc.…
Likewise with other aspects of our lives, AI can impact the economy around the world too. Its ability to process vast amounts of data and automate tasks will lead to higher productivity. Companies will likely increasingly turn to AI for content creation, software development, marketing, sales and customer service. However, it doesn’t mean that just companies will use AI to boost their productivity. At the moment, many people are using it to get ideas and improve their personal and professional lives. Moreover, AI will cause economic growth. It is estimated that AI could contribute over $15 trillion to the global economy by 2030. Funding for AI development is pouring in from corporate investors, individuals and governments.
There are assumptions about the influence of AI on inflation too. It might reduce inflation by up to 1 percentage point annually, enhancing economic stability.
As it is mentioned above, AI has advantages and disadvantages. However, it doesn’t mean that it will gradually replace humans in all fields. Although AI is an enhancing and advancing technology, it still will need to be monitored and altered by humans. As many huge revolutions occurred in the past, humans have the ability to adjust themselves to the new environment and move one with them. I believe the same will happen with AI.
Let’s turn barriers into opportunities.
How Global Warming Affects Global Economy
As the temperature is rising globally, there are many concerns about its negative effect on the global economy. Global warming is caused by both natural factors and release of greenhouse gas, pollution and many more human activities that are harmful for the earth.
Global warming means that the overall temperature of earth is going up. It started from the pre-industrial era meaning from the early 1800s and is continuing to the very moment.
Global warming can have a negative influence on the global industry if it persists to increase like the past decades. Warmer temperatures, rising sea levels and extreme weather events can damage properties, infrastructures and sectors like agriculture, forestry, fisheries and tourism. The U.S. alone could face annual costs of $520 billion (if global temperatures rise by 4.5°C) or $224 billion less (at 2.8°C) due to climate change.
Global warming can cause disruptions worldwide. It can affect trades, supply chains and overall businesses and industries around the world and cause huge losses for the private and public organizations and governments. Agriculture is one of the most vulnerable sectors against global warming. It can be easily influenced and receive devastating damages caused by global warming and climate change such as droughts, floods, thunderstorms and other unseasonal events. Global warming can damage and harm many lives in several countries such as many African countries that rely on agriculture for the most part of their GDP.
Published on 07/05/2024
Global warming has multifaceted impacts and will affect us in every aspect of our lives.
Cryptocurrency is a virtual or digital currency. It does not exist in physical form. Cryptocurrency uses cryptography which makes it nearly impossible to double-spend or counterfeit. The first cryptocurrency, Bitcoin, was made by an anonymous computer programmer or a group of computer programmers in 2009. Before Bitcoin, there was another cryptographer named David Chaum who developed an early form of cryptographic electronic money called eCash in 1990.
The key points to know about cryptocurrency is that they operate decentralized networks using blockchain technology. This technology allows them to be out of reach of agencies and governments. They are not directly controlled or monitored by governments, however some countries have specific guidelines and others are cautious about it.
Cryptocurrency uses blockchain technology which is a connected set of information blocks on an online ledger. Each block contains verified transactions which makes it difficult to forge transaction histories.
Other than that cryptocurrency has a secure method for payments and transactions. It enables secure online payments without intermediaries. It relies on encryption algorithms and cryptographic techniques to safeguard transactions. Examples of cryptocurrencies can be Bitcoin (BTC), Ethereum (ETH) and many more. Each of these currencies have their own unique features.
Lastly, we need to remember that although cryptocurrencies have many advantages like decentralization and faster and secure transactions, they have disadvantages too. For example, they can face challenges such as price volatility and energy consumption.