War No Quick Fix for Economy

Don't look for an instant upswing in the economy once the war in Iraq is over, says UAB economics professor S.D. Lee, Ph.D. "Usually an economic recovery or boom immediately follows major wars for several reasons: the government deficit spending during the war, elimination of economic uncertainty, explosion of pent up demand during the war and the economy's self-healing mechanism," Lee says. A short war, like this one looks to be, is not as costly as a long endeavor and is not going to help the economy quickly rebound. "Before the war, our economy was in a fragile condition, so it will take some time to gain its strength." Lee expects an economic upswing sometime next year.