Iraq war caused slowdown in the US

By | March 1, 2008

Iraq war caused slowdown in the US

THE Iraq war has cost the US 50-60 times more than the Bush administration predicted and was a central cause of the sub-prime banking crisis threatening the world economy, according to Nobel Prize-winning economist Joseph Stiglitz. The former World Bank vice-president yesterday said the war had, so far, cost the US something like $US3trillion ($3.3 trillion) compared with the $US50-$US60-billion predicted in 2003. …The money being spent on the war each week would be enough to wipe out illiteracy around the world, he said. Just a few days’ funding would be enough to provide health insurance for US children who were not covered, he said.

The public had been encouraged by the White House to ignore the costs of the war because of the belief that the war would somehow pay for itself or be paid for by Iraqi oil or US allies.

“When the Bush administration went to war in Iraq it obviously didn’t focus very much on the cost. Larry Lindsey, the chief economic adviser, said the cost was going to be between $US100billion and $US200 billion – and for that slight moment of quasi-honesty he was fired.

“(Then defence secretary Donald) Rumsfeld responded and said ‘baloney’, and the number the administration came up with was $US50 to $US60 billion. We have calculated that the cost was more like $US3 trillion.

“Three trillion is a very conservative number, the true costs are likely to be much larger than that.”… – Aust

3 thoughts on “Iraq war caused slowdown in the US

  1. mike4mike

    Excellent post. Unfortunately, we have yet to understand the full cost of the Iraq war on the nation. Hidden costs include taking our eyes off internal priorities, and spending ourselves almost into oblivion.
    In that sense, the terrorists have scored a strategic victory. We responded to an Afghani attack with a war in a third country, with more force than necessary, and Bush/Cheney have ended up strengthening the enemy’s propoganda. In the process, they have fundamentally damaged our national defense. The Army is being worn out. The Air Force equipment is wearing out faster than it can be replaced, even as the funds to perform normal maintenance and modernization are siphoned off to pay mercenary soldiers and fund no-bid support contracts.
    The other costs unaddressed are associated with physical and emotional recovery for returning soldiers.
    Even if we ended the Iraq war tomorrow, the repercussions of this expedition will dominate our freedom, security and economy for decades.

  2. shafi

    Bush has conveyed the senate with true lies by WMD and was vindictive against Iraq brutal dictator and he not only deteroited the US economy but also International slow down. Also to add the fuel by his faulty middle-east policy he aggrivated Terrorism in the name of religion. On the whole one of the brutal ever president the people of America has elected for such a high, senitive office which affect internationally.

Leave a Reply