Iraq Black Hole: The $2 Trillion War

Before the US invaded Iraq, the Pentagon and the US Office of Management and Budget estimated that the war could cost up to $60 billion and that Iraqi oil revenues would cover the costs. The Congressional Budget Office now estimates the war will cost $500 million. However, Harvard and Columbia professors have teamed up to prepare a true cost-benefit analysis based on government sources – and report the war will cost the US more than $2 trillion. The costs include the care for more than 17,000 wounded soldiers, weapons replenishment, and reenlistment bonuses. Instead of imposing taxes to pay for the war, the US has increased borrowing, counting on future generations to pay the interest. The government, both the executive and the legislative branches, failed in planning ahead for the war’s substantial long-term costs. A war that was supposed to protect against terrorism could hamper long-term US economic security along with future military operations. – YaleGlobal