August 28, 2007 Has the War in Iraq actually exceeded One Trillion U.S. Dollars?
POP-ED Piece by Ian Jarvis
Official studies concerning the war’s costs project a number in the one trillion dollar range. Some independent analysts say that estimate doesn’t add up.
The current cost of the war is approximately $500 billion dollars; roughly $100 billion dollars per year. Economics Professor Joseph Stiglitz and budgetary expert Linda Bilmes analyzed the cost of the Iraq War in late 2005. They projected total direct costs to the U.S. government at being $700 billion in a conservative scenario and $1 trillion in a moderate one.
But some economists who have studied the war go beyond the current, direct costs of fuel, logistics and material to include not only dollars that must be spent following the war to rebuild ammunition, vehicles, and firearms stocks, but also other relevant categories as well.
These analysts looked into the vast sums spent to retain veterans and find new recruits as well because the war has shrunk the pool for willing soldiers. Also counted are benefits: costs for the dead as well as disability costs for the wounded which are paid for decades in many cases. The 1991 Gulf War for example lasted only four weeks. Today some 40% of those soldiers are currently on disability. Under the pressure of Iraq, the cost of veterans disability went up by $228 billion in 2006 alone, and that was before the Walter Reed scandals were uncovered.
Third tier costs include the effect on the economy when billions of tax dollars go to war instead of infrastructure, education, homeland security, or conservation. Last on the list is borrowing for the war - hundreds of billions - creating interest payments alone of billions per year. Like any borrower who is living beyond their means, the country’s debt rating is negatively affected. This debt load in turn gives strength to other currencies which drives the value of the dollar down in the currency markets and makes further borrowing even more expensive. This also drives up the cost of imports. That in turn, trickles down to less money consumers have for purchases as small as an air conditioner and as large as a home mortgage or a medical bill.
Under those conditions, some economists consider a figure of even three trillion to be far below the true number and point out that the American people will be paying the cost of this war for many decades to come.
Burning Man Sake-Margo 2007.
Photo: Rich LeFurgy
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