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Wednesday, October 24, 2007

The Cost of the War

The CBO has estimated the cost of the war based upon two scenarios:

Summary At the request of Chairman Spratt, the Congressional Budget Office (CBO) has totaled the funding provided through fiscal year 2007 for military and diplomatic operations in Iraq and Afghanistan and other activities associated with the war on terrorism, as well as for related costs incurred by the Department of Veterans Affairs (VA) for medical care, disability compensation, and survivors’ benefits. In addition to totaling the funding provided to date, CBO has projected the total cost over the next 10 years of funding operations in support of the war on terrorism under two scenarios specified by the Chairman. Those scenarios are meant to serve as an illustration of the budgetary impact of two different courses in the war on terrorism but are not intended to be a prediction of what will occur.

Warcosts
Appropriations for U.S. Operations in Iraq and Afghanistan and for the War on Terrorism (Billions of dollars)

Including both funding provided through 2007 and projected funding under the two illustrative scenarios, total spending for U.S. operations in Iraq and Afghanistan and other activities related to the war on terrorism would amount to between $1.2 trillion and $1.7 trillion for fiscal years 2001 through 2017 (see Table 1). A final section of this testimony briefly compares parts of CBO’s estimate to a frequently cited estimate prepared by two academic researchers, Linda Bilmes and Joseph Stiglitz. ...

According to this, there is an additional $700 billion in interest expenses bringing the total (under the $1.7 trillion dollar scenario) to $2.4 trillion. There is more to say but, unfortunately, I am short on time, so I will leave it to you to add more detail in comments. [Update: More here.]

    Posted by on Wednesday, October 24, 2007 at 02:34 PM in Economics, Iraq and Afghanistan, Terrorism | Permalink  TrackBack (2)  Comments (56)

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    » Cost and Benefits of the Iraq War from Angry Bear

    Mark Thoma brings us the latest estimate from the CBO. I just read the USA Today coverage of this and Dean Baker would be happy to know that this paper translated the $2.4 trillion into $8000 per person. Of course, Bill Kristol estimated the cost of th... [Read More]

    Tracked on Wednesday, October 24, 2007 at 08:54 PM

    » Iraq WarCosts from The Deaf Claque

    By Nathan Schmitt Lets take a look at the monetary costs of the war, and lets let economist Mark Thoma give us a hand. This piece of his includes text from the Congressional Budget Offices (CBO) cost of war testimony: Including both fund... [Read More]

    Tracked on Friday, October 26, 2007 at 01:39 PM


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