National economic policy
On the issue of the global war on terror there are various effects which come along with the paying for the long-term war on terror. The huge amounts spent on this kind of war are spent through the government, through the private and other indirect means in the economy and these costs will need to be paid in the years to come.
The policy or programs recommended addressing the likely effects of paying for the war on terror
World trade organization
The world trade organization as an international organization promotes liberalization by encouraging all the nations to lower their existing trade barriers.
In addressing the issue of the global war on terror the world trade organization has a mechanism by which it settles and also resolves various disputes without the result of any costly trade wars. Since the United States is a member of the world trade organization the country’s markets have been liberalized (William D. Orpheus 2002)
The social security program is highly recommended in addressing the likely effects of war on terror. This ensures that the country has provided its citizens with the security that is needed against the attacks from the country’s enemies. Through the social security program the American citizens are given internal as well as the external security and they are also made to feel very safe in their own country.
This is achieved by the continual; manning of the country’s entry points such as the airports and the sea. Ports. On the other hand there is lot of surveillance in the country and this prevents any possible attacks from the terrorists. The social security fund similarly ensures that the social welfare of the country’s citizen is well catered for and the citizens are well aware of their social security in terms of their social welfare. (U.S. Department of Justice 2002)
Medicare and Medicaid spending
The Medicare and also the medic aid spending are also recommended in addressing the likely effects of paying for the long term war on terror. This provides the soldiers and also those who are involved in the war on terrorism a cover on their medical spending.
The long-term financial strategy and the unique fiscal challenges of paying for the long term war on terror
The American national security highly depends on the country’s financial security. There has been a revolutionary war debt in America and this and this has been a very huge threat to the nation’s creditworthiness and also its very existence. There has been an establishment of various financial principles in order to further secure the country. The country has been borrowing a lot so that it can pay for the war in Iraq as well as the short sighted tax cuts in the face of the long term war on terror which has been running against the American tradition thus placing the country into a security peril. (Daniel McGinnis with Suzanne Smalley 2003)
This has led the American government to further realign its economic policies on the country’s taxes, the social security, Medicare, and also the country’s oil dependency so as to safeguard the American liberty as well as its future. The need to pay for the war on terror in America has driven the country to a financial innovation the American common duties for instance have often fallen off with the existing hostilities and this has further led to the increased reliance on the consumption and also the excise taxes.
This has highly cut the civilians demand and freeing up the war resources but it has been very burdensome on the poor Americans. On the other hand the taxes on the businesses in America and also the wealthy people are very popular however they do not this do not reduce the consumption in the country and they also discourage an energetic investment in the country’s war industries. If it is broad based the financial debt can cement the support on the war but if it is not then it could lead to a class of creditors who have excessive political power.
The shortsighted fiscal policy
The forging of the American fiscal policy has not been very simple since most of the American president’s have been frequently facing the congressional resistance to the country’s massive tax and its borrowing requests on several occasions. It has been found that the fiscal policy can not be only about the raising of very huge sums of money even though this is very important for the country as it addresses the issue of war on terror. But the fiscal policy could also be about finding several ways in resolving the country’s internal differences so as to unite the country behind the war effort as well as maximizing the productive output in the country’s economy.
The American fiscal policy is short sighted since it is viewed by large portions of the country’s populations as unfair since the methods employed by the political leaders for securing funds for the war are also not fair. This will however make the efforts for the support for the war to greatly suffer. On the other hand the methods used to raise money for the war on terror have weakened the country’s economy and also the country’s foundation of the military power.
America has been faced with a major challenge of financing the war on terrorism since the long war has been fought is being fought in parallel with the ground wars which are prolonged in Iraq and also Afghanistan. The fiscal policy will limit and also prevent the government’s ability to pay for the threats of the catastrophic attacks from the country’s unknown enemies. This is because the policy has led to the elimination, postponement or even the reduction of funding for the low priority domestic projects so that there can be room for the high priority military spending in the budget.
How to successfully prosecute the global war on terror while at the same time meeting the growing cost of retirement and the healthcare benefits
The American leaders can successfully prosecute the global war on terror while at the same time meet the growing cost of the population’s retirements and the healthcare benefits of all the Americans. This could be achieved by finding ways which meet the crucial security needs while at the same time addressing the country’s healthcare costs of the aging population and the escalating retirement benefits.
The country’s administration should adapt a long-term fiscal strategy which will allow for such needs to be met. The country’s budget on the other hand should encompass and also as set aside some amounts of money which will cater for the social security demands, together with the healthcare benefits and the growing costs of retirement for the aging population in America. Similarly the strategy should include more thorough prioritization on the allocation of the country’s resources.
This will allow the curbing of the non essential spending in the country. On the other hand there should be a tax policy which will help in the avoidance of the country’s chronic deficits. Similarly the American government should adapt fiscal policies and strategies which will match the payouts in the prerogative programs at a closer look to the money which is flowing into the country. (Robert D. Hormat. 2007)
The country should also reduce its dependence on the on the foreign capitals as this aggravate s the financial threat which is facing America as a nation. So that there could be a successful prosecution on both the war on terrorism and at the same time meeting the growing cost of retirement and the healthcare benefits the fiscal policy should be consistent and not in any way undermine the American national security.
William D. Orpheus (2002): Iraq, The Economic Consequences of the War. New York
Review of Books, December 5,
U.S. Department of Justice. (2002): Explanation of the Process for Computing Presumed Economic Loss. Retrieved from
Accessed on 12th December 2007
Daniel McGinnis with Suzanne Smalley (2003): Now Families Face the Cost of War.
Newsweek, April 21, 2003, p. 11.
.Robert D. Hormat. (2007): The Price of Liberty: Paying for Americas Wars. Published by Henry and Holt Company