Tuesday, March 04, 2008

The $3,000,000,000,000 War is a Domestic Issue

By Arianna Huffington, Huffington Post

As our seemingly endless primary process reaches the homestretch and the focus shifts to the general election, we need to pull the plug on the media's disturbing habit of acting as if foreign policy and domestic policy are completely separate entities -- a pair of high stakes board games that can only be taken off the shelf and played one at a time. To hear the media tell it, combining the two would make about as much sense as using your Monopoly pieces to play Risk.

But while there is almost nothing about the Iraq war that can be labeled a success, we can declare that it has been exceedingly successful in showing how intertwined foreign and domestic policy actually are. In the book The Three Trillion Dollar War: The True Cost of the Iraq Conflict, Nobel Prize-winning economist Joseph Stiglitz, along with co-author Linda Bilmes, argue that, even using "conservative assumptions," the Iraq war will cost at least $3,000,000,000,000, and likely as much as $5,000,000,000,000.

Stiglitz also argues that the war has played a major role in the current subprime credit crisis and our long, hard slog toward recession. Because of the cost of the war, the Fed flooded the system with credit. "The regulators were looking the other way and money was being lent to anybody this side of a life-support system," Stiglitz told The Australian's Peter Wilson.

The book (excerpted here by the Times of London, and here's an interview with the authors at Democracy Now) notes that the cost is 60 times the $50 - 60 billion we were told the war would cost by Don Rumsfeld. The Iraq war is already the second costliest war in American history, trailing only World War II.

Stiglitz makes the case that no country can fight a protracted war without deep and long-lasting effects on domestic policy. Particularly a protracted war paired with tax cuts. Now this doesn't mean a war shouldn't be fought (see World War II), but it does mean that our leaders should be honest about what the real costs will be. And not just in terms of dollars and cents but also in opportunity costs.

More after the click ...

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