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Iraq War
The Iraq War or War in Iraq, also referred to as the Second Gulf War or Operation Iraqi Freedom,[49] was a military campaign that began on March 20, 2003,[50][51] with the invasion of Iraq by a multinational force led by troops from the United States under the administration of President George W. Bush and the United Kingdom under Prime Minister Tony Blair.[52]
Prior to the invasion, the governments of the United States and the United Kingdom asserted that the possibility of Iraq employing weapons of mass destruction (WMD) threatened their security and that of their coalition/regional allies.[53][54][55] In 2002, the United Nations Security Council passed Resolution 1441 which called for Iraq to completely cooperate with UN weapon inspectors to verify that it was not in possession of weapons of mass destruction and cruise missiles. The United Nations Monitoring, Verification and Inspection Commission (UNMOVIC) was given access by Iraq under provisions of the UN resolution but found no evidence of weapons of mass destruction. Additional months of inspection to conclusively verify Iraq's compliance with the UN disarmament requirements were not undertaken.[56][57][58][59] Head weapons inspector Hans Blix advised the UN Security Council that while Iraq's cooperation was "active", it was not "unconditional" and not "immediate". Iraq's declarations with regards to weapons of mass destruction could not be verified at the time, but unresolved tasks concerning Iraq's disarmment could be completed in "not years, not weeks, but months".[56][60]
Following the invasion, the U.S.-led Iraq Survey Group concluded that Iraq had ended its nuclear, chemical, and biological programs in 1991 and had no active programs at the time of the invasion but that Iraq intended to resume production once sanctions were lifted.[61] Although some degraded remnants of misplaced or abandoned chemical weapons from before 1991 were found, they were not the weapons which had been the main argument to justify the invasion.[62] Some U.S. officials also accused Iraqi President Saddam Hussein of harboring and supporting al-Qaeda,[63] but no evidence of a meaningful connection was ever found.[64][65] Other reasons for the invasion given by the governments of the attacking countries included Iraq's financial support for the families of Palestinian suicide bombers,[66] Iraqi government human rights abuse,[67] and an effort to spread democracy to the country.[68][69]
The invasion of Iraq led to an occupation and the eventual capture of President Saddam, who was later tried in an Iraqi court of law and executed by the new Iraqi government. Violence against coalition forces and among various sectarian groups soon led to the Iraqi insurgency, strife between many Sunni and Shia Iraqi groups, and the emergence of a new faction of al-Qaeda in Iraq.[70][71] In 2008, the UNHCR reported an estimate of 4.7 million refugees (~16% of the population) with 2 million abroad (a number close to CIA projections[72]) and 2.7 million internally displaced people.[73] In 2007, Iraq's anti-corruption board reported that 35% of Iraqi children, or about five million children, were orphans.[74] The Red Cross stated in March 2008 that Iraq's humanitarian situation remained among the most critical in the world, with millions of Iraqis forced to rely on insufficient and poor-quality water sources.[75]
In June 2008, U.S. Department of Defense officials claimed security and economic indicators began to show signs of improvement in what they hailed as significant and fragile gains.[76] In 2007, Iraq was second on the Failed States Index; though its ranking has steadily improved since then, moving to fifth on the 2008 list, sixth in 2009, and seventh in 2010.[77] As public opinion favoring troop withdrawals increased and as Iraqi forces began to take responsibility for security, member nations of the Coalition withdrew their forces.[78][79] In late 2008, the U.S. and Iraqi governments approved a Status of Forces Agreement effective through January 1, 2012.[80] The Iraqi Parliament also ratified a Strategic Framework Agreement with the U.S.,[81] aimed at ensuring cooperation in constitutional rights, threat deterrence, education,[82] energy development, and other areas.[83]
In late February 2009, newly elected U.S. President Barack Obama announced an 18-month withdrawal window for combat forces, with approximately 50,000 troops remaining in the country "to advise and train Iraqi security forces and to provide intelligence and surveillance".[84][85] General Ray Odierno, the top U.S. military commander in Iraq, said he believes all U.S. troops will be out of the country by the end of 2011,[86] while UK forces ended combat operations on April 30, 2009.[87] Iraqi Prime Minister Nouri al-Maliki has said he supports the accelerated pullout of U.S. forces.[88] In a speech at the Oval Office on 31 August 2010 Obama declared "the American combat mission in Iraq has ended. Operation Iraqi Freedom is over, and the Iraqi people now have lead responsibility for the security of their country."[89][90][91] Beginning September 1, 2010, the American operational name for its involvement in Iraq changed from "Operation Iraqi Freedom" to "Operation New Dawn." The remaining 50,000 U.S. troops are now designated as "advise and assist brigades" assigned to non-combat operations while retaining the ability to revert to combat operations as necessary. Two combat aviation brigades also remain in Iraq.[92]
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s.[1] It was the longest, most widespread, and deepest depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline.[2] The depression originated in the U.S., starting with the fall in stock prices that began around September 4, 1929 and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). From there, it quickly spread to almost every country in the world.
The Great Depression had devastating effects in virtually every country, rich and poor. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Unemployment in the U.S. rose to 25%, and in some countries rose as high as 33%.[3] Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by approximately 60%.[4][5][6] Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as cash cropping, mining and logging suffered the most.[7]
Some economies started to recover by the mid-1930s. However, in many countries the negative effects of the Great Depression lasted until the start of World War II.[8]
Economic historians usually attribute the start of the Great Depression to the sudden devastating collapse of US stock market prices on October 29, 1929, known as Black Tuesday.[9] However, some dispute this conclusion, and see the stock crash as a symptom, rather than a cause, of the Great Depression.[3][10] Even after the Wall Street Crash of 1929, optimism persisted for some time; John D. Rockefeller said that "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again."[11] In fact, the stock market turned upward in early 1930, returning to early 1929 levels by April. This was still almost 30% below the peak of September 1929.[12] Together, government and business actually spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom had suffered severe losses in the stock market the previous year, cut back their expenditures by ten percent. Likewise, beginning in the summer of 1930, a severe drought ravaged the agricultural heartland of the USA.
By mid-1930, interest rates had dropped to low levels. But expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment were depressed.[13] By May 1930, automobile sales had declined to below the levels of 1928. Prices in general began to decline, although wages held steady in 1930; but then a deflationary spiral started in 1931. Conditions were worse in farming areas, where commodity prices plunged, and in mining and logging areas, where unemployment was high and there were few other jobs. The decline in the US economy was the factor that pulled down most other countries at first, then internal weaknesses or strengths in each country made conditions worse or better. Frantic attempts to shore up the economies of individual nations through protectionist policies, such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries, exacerbated the collapse in global trade. By late 1930, a steady decline in the world economy had set, which did not reach bottom until 1933.
There were multiple causes for the first downturn in 1929. These include the structural weaknesses and specific events that turned it into a major depression and the manner in which the downturn spread from country to country. In relation to the 1929 downturn, historians emphasize structural factors like massive bank failures and the stock market crash. In contrast, economists (such as Barry Eichengreen, Milton Friedman and Peter Temin) point to monetary factors such as actions by the US Federal Reserve that contracted the money supply, as well as Britain's decision to return to the Gold Standard at pre–World War I parities (US$4.86:£1).
Recessions and business cycles are thought to be a normal part of living in a world of inexact balances between supply and demand. What turns a normal recession or 'ordinary' business cycle into an actual depression is a subject of much debate and concern. Scholars have not agreed on the exact causes and their relative importance. Moreover, the search for causes is closely connected to the issue of avoiding future depressions.
Thus, the personal political and policy viewpoints of scholars greatly colors their analysis of historic events occurring eight decades ago. An even larger question is whether the Great Depression was primarily a failure on the part of free markets or, alternately, a failure of government efforts to regulate interest rates, curtail widespread bank failures, and control the money supply. Those who believe in a larger economic role for the state believe that it was primarily a failure of free markets, while those who believe in a smaller role for the state believe that it was primarily a failure of government that compounded the problem.
Current theories may be broadly classified into two main points of view and several heterodox points of view. First, there are demand-driven theories, most importantly Keynesian economics, but also including those who point to the breakdown of international trade, and Institutional economists who point to underconsumption and over-investment (causing an economic bubble), malfeasance by bankers and industrialists, or incompetence by government officials. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating the drop in demand.
Secondly, there are the monetarists, who believe that the Great Depression started as an ordinary recession, but that significant policy mistakes by monetary authorities (especially the Federal Reserve), caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Related to this explanation are those who point to debt deflation causing those who borrow to owe ever more in real terms.
Lastly, there are various heterodox theories that downplay or reject the explanations of the Keynesians and monetarists. For example, some new classical macroeconomists have argued that various labor market policies imposed at the start caused the length and severity of the Great Depression. The Austrian school of economics focuses on the macroeconomic effects of money supply, and how central banking decisions can lead to over-investment (economic bubble). The Marxist critique of political economy emphasizes the tendency of capitalism to create unbalanced accumulations of wealth, leading to overaccumulations of capital and a repeating cycle of devaluations through economic crises.
World War II and recovery
A female factory worker in 1942, Fort Worth, Texas. Women entered the workforce as men were drafted into the armed forces.
The common view among economic historians is that the Great Depression ended with the advent of World War II. Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression. However, some consider that it did not play a very large role in the recovery, although it did help in reducing unemployment.[9][48][49]
The massive rearmament policies leading up to World War II helped stimulate the economies of Europe in 1937–39. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 finally ended unemployment.[50]
America's entry into the war in 1941 finally eliminated the last effects from the Great Depression and brought the unemployment rate down below 10%.[51] In the U.S., massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending the Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts.
Effects
During the Depression bankers became so unpopular that bank robbers, such as Bonnie and Clyde, became folk heroes.[52]
The majority of countries set up relief programs, and most underwent some sort of political upheaval, pushing them to the left or right. In some states, the desperate citizens turned toward nationalist demagogues—the most infamous being Adolf Hitler—setting the stage for World War II in 1939.
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