Although the predictions have been made that the war would end quickly with an American victory and send stock prices up and oil prices down, fighting has intensified, the market prices fell, oil prices increased and college students continue to struggle to find a job.
“The actual start of the war led to an increase in the stock market, and the market does adjust to war news,” Dr. Mary Harris, assistant professor of finance, said. “Any positive war news indicating a quick end is met typically with a rally on the stock market.”
However, now that the fighting has continued, analysts are saying that the results of the war with Iraq would be a “recession to a mild stimulant,” according to the New York Times.
With the war costing so much money, President Bush asked Congress for $75 billion to pay for the war up to the end of September. Although that kind of money might have some Americans afraid of the United States ending up in depression, according to the New York Times, this war is a small war compared to past wars.
With the uncertainty of the economic status of the war, analysts cannot predict just how the economy will be affected. The economy so far has not seen a significant increase. The daily ups and downs are still prevalent even during wartime.
The impact of the war on employment has not been great for graduating seniors and other college students who are in search of a job. “I have been advising my finance majors that the market is not good right now for graduating seniors, due mainly to the current economic conditions in this country, which have been indirectly impacted by 9/11 and the war and the recent fraudulent issues in the accounting and finance fields,” Harris said. “Both of these factors cause uncertainty and cost containment at many firms, which can reduce hiring of college graduates.”
College graduates can expect to find a difficult time getting hired with an entry-level job because those people who are either unemployed or lost their job “may be willing to take an entry-level job from a college graduate,” Harris said.
Harris gives this advice to graduating seniors “this may not be the year to enjoy the summer and start looking in the fall – the good jobs may be gone by then.”
