The federal deficit in the fiscal year 2012 was $1,089 billion, which is continuously becoming a burden on the economy of United States since the country decided to go on war. As a result of this extra burden put on the economy of the united states many sectors of the economy started failing like banking sector, Manufacturing sector especially vehicles. Other than this the unemployment rate touched its highest figure hence reducing the purchasing power of people. The non-monetary issues created by this war were a sense of insecurity especially in the countries where these militants were hiding. This war has highlighted the difference in religion to new heights, which had become a major source of unrest in the Muslim Umah. Many people have tried to diagnose the problem but got afraid from the rejection by the citizens of United States. We need to understand that the demand for war is a dying concept, the people want security but they also need jobs to fulfill their basic needs. This war on terrorism has been incurring too much collateral damage and the innocent affected people by this war are continuously growing and becoming a revengeful victim. I believe that the war on terrorism may look like solving the security problems for United States but in reality these economic effects of terrorism and creating long-term hatred among the affected people.