Spring Break
Stiglitz addresses Iraq war economic aftermath
Issue date: 4/10/08
Nobel Prize-winning economist Joseph Stiglitz spoke about his newest publication, "The Three Trillion Dollar War," - an economic perspective on the Iraq war's social, political and monetary costs - on Tuesday night's Foreign Affairs Symposium to a receptive audience.
According to government estimates, the U.S. has already spent over $600 billion on the war in Iraq, but Stiglitz disagrees with these approximations.
"The U.S. went to war with an estimated initial budget of $100 to 200 billion ... things have turned out pretty differently. We are now spending 12 billion a month," he said. "The conservative estimate of the cost of war is between $3 to 5 trillion."
In order to put this high price tag into perspective, Stiglitz compared the cost of the war with the funding required for fixing the Social Security system.
"Roughly for the one-sixth of the cost of the Iraq war, we could have put the Social Security system into sound standing," Stiglitz said. In fact, he claimed, the United States could even double the amount of aid given to Africa "with the cost of a few days of fighting in Iraq."
According to Stiglitz, the primary factor in this $3 to 5 trillion estimate is the $12 billion per month that it costs just to support the troops on the ground.
Further into the discussion, Stiglitz also noted the danger of building debt in order to pay for the war.
"This is the first war that was paid by America's credit card. When we went to war, we [already had] a deficit," Stiglitz said. "40 percent of our deficit has been financed abroad."
Stiglitz also noted that the standard U.S. Army "death gratuity" for those killed in the war is $500,000. However, this number does not include the enormous cost of a series of other compensations as well as the lost economic productivity of the individual, according to Stiglitz.
He also maintained that the state of America's economic performance and the effects of the ongoing war are related. To a large extent, the economy is negatively affected by the war.
According to government estimates, the U.S. has already spent over $600 billion on the war in Iraq, but Stiglitz disagrees with these approximations.
"The U.S. went to war with an estimated initial budget of $100 to 200 billion ... things have turned out pretty differently. We are now spending 12 billion a month," he said. "The conservative estimate of the cost of war is between $3 to 5 trillion."
In order to put this high price tag into perspective, Stiglitz compared the cost of the war with the funding required for fixing the Social Security system.
"Roughly for the one-sixth of the cost of the Iraq war, we could have put the Social Security system into sound standing," Stiglitz said. In fact, he claimed, the United States could even double the amount of aid given to Africa "with the cost of a few days of fighting in Iraq."
According to Stiglitz, the primary factor in this $3 to 5 trillion estimate is the $12 billion per month that it costs just to support the troops on the ground.
Further into the discussion, Stiglitz also noted the danger of building debt in order to pay for the war.
"This is the first war that was paid by America's credit card. When we went to war, we [already had] a deficit," Stiglitz said. "40 percent of our deficit has been financed abroad."
Stiglitz also noted that the standard U.S. Army "death gratuity" for those killed in the war is $500,000. However, this number does not include the enormous cost of a series of other compensations as well as the lost economic productivity of the individual, according to Stiglitz.
He also maintained that the state of America's economic performance and the effects of the ongoing war are related. To a large extent, the economy is negatively affected by the war.
Viewing Comments 1 - 1 of 1
sana
posted 7/14/08 @ 5:50 PM EST
hi thanx for inofrmation.
i have a question if you please give me some information what is the long-term consequense of iraw war?
Post a Comment