3051. How Do War Financing Strategies Lead to Inequality? A Brief History from the War of 1812 through the Post-9/11 Wars
- Author:
- Rosella Cappella Zielinski
- Publication Date:
- 07-2018
- Content Type:
- Special Report
- Institution:
- Watson Institute for International and Public Affairs at Brown University
- Abstract:
- This report provides estimates for how the United States government has paid for its wars, from the War of 1812 through the current post-9/11 “Global War on Terror” (Iraq, Afghanistan, and Other Operations), and addresses the relationship between war finance and inequality. The findings suggest that government borrowing to pay for wars leads to greater social inequality in the aftermath of the war. This happens when wars are paid for via general public debt versus a war bond campaign, particularly when combined with indirect taxes (such as sales, value-added, excise, and customs taxes) or a tax cut. Conversely, wars financed via bond campaigns targeted to low- and middle-income populations and direct taxes (such as income, property, and corporate taxes) result in greater social equality.
- Topic:
- International Affairs
- Political Geography:
- Global Focus