Global tensions elevated by the war in Iraq and the war on terror are creating new and unfamiliar headwinds for American businesses. And the impact of the war in Iraq is unclear. Defense spending is up and may boost economic growth this year. But the current climate of anger and insecurity is the opposite of the open, friendly world that helped fuel the 1990s economic boom and dreams of bright global horizons for U.S. companies.
Michael J. Mandel, Chief Economist for Business Week and author of “How War Will Reshape the Economy?” says that the current military spending will boost the American economy in the short run. But, the aftermath of the war in Iraq and the uncertainty of the future will ultimately dampen the growth of the American economy.
Click the “Listen” link to hear more about how the war in Iraq and the growing anti-American sentiments around the world will impact the American economy.
Guests:
Michael J. Mandel, Chief Economist for Business Week and author of the article “How War Will Reshape the Economy?”
Stephan Richter, publisher of The Globalist, an online magazine on the global economy
Robert Hormats, Vice Chairman of Goldman Sachs International.
