Iraq war costs spinning out of control

May 7, 2007
Iraq war costs spinning out of control

Even if the war were to end in days, its costs to taxpayers will drag on for decades. A study by Linda Bilmes, an economist at Harvard University, and Columbia University's Joseph Stiglitz last fall estimated total costs could reach $2.2 trillion – "and counting." That was before the president's recent "surge" plan.

Such calculations are rough and depend on assumptions. Nonetheless, the sum is miles away from the administration's original estimate that the war would cost $50 billion. Lawrence Lindsay, a White House economic adviser at that time, lost his job after suggesting the war might cost $200 billion.

Professors Bilmes and Stiglitz put the long-term budgetary costs, assuming the US maintains a small presence in Iraq through 2016, in the $1.4 trillion range. If all troops are home by 2010, the Iraq operations would cost $1 trillion.

These numbers include veterans' healthcare and disability compensation. In addition, there are demobilization costs. And the military will have to replace or refurbish much worn-out equipment. For instance, the Army's tanks were not built for sandy desert conditions and deteriorate rapidly in Iraq.