Gulf War Might Not Aid U.S. Economy --- Mideast Scenario Differs From Past Conflicts
WASHINGTON -- It took World War II to pull the U.S. out of the Great Depression, and if it weren't for American fighting in Vietnam the economy probably wouldn't have achieved a record nine-year expansion in the 1960s.</br></br>But if the standoff in the Persian Gulf turns into war, the U.S. economy -- already on the brink of recession -- isn't likely to benefit, many economists say.</br></br>This time, in fact, war could hurt the economy.</br></br>In the past, stepped-up military spending brought escalating factory orders for everything from airplanes to leather boots, creating jobs and consequently cranking up overall economic activity.</br></br>But this time, the defense buildup already has occurred. The Pentagon's peacetime shopping spree in the 1980s, coupled with the reduced threat of hostilities in Europe, have left the country with plenty of arms, airplanes and tanks to fight a Persian Gulf war, analysts say. And few expect the kind of extended war that would turn the post-Cold War military bust into a major boom.