Iraq War Costs hit home

[oregonpackfan]

The National Priorities Project has a web site that helps bring the financial cost of the war for local communities, based on population. The site is:

https://www.nationalpriorities.org/costofwar

I live in Washington County, Oregon. It has a population of nearly 500,000 people encompassing 732 square miles. It is located just west of Portland's Multnomah County. Its main industries are agriculture, manufacturing, and lumber.

Washington County taxpayers have paid nearly $700 million for the war thus far. Instead that money could have been used for:

141,955 people with health care
655,835 homes with renewable energy
14,385 public safety officers
11,765 music and arts teachers
66 new elementary teachers
104,429 Head Start places for children
11,903 elementary school teachers
119,509 scholarships for university students.

While national polls show that most Americans' concerns about the economy have surpassed the worries about the Iraq War, the two are linked.

So far, the United States has spent over $500 billion for the war. Much of that money is actually borrowed money from foreign countries like China and Saudi Arabia. That means our children and grandchildren will be paying for the war on both the principal and the resulting interest on the loans.

Go to the website yourself and see how much your county and/or community has sacrificed and will continue to sacrifice for the war.

[Freak Out]

OPF...please stop it. The Iraqi's were mounting a surprise attack with all manner of Weapons of mass destruction and supporting terrorist of all nature. We had to do it and it was worth every penny. I really regret never having voted for Dubya.

[texaspackerbacker]

I don't suppose you guys know WHO is behind that website. Possibly Moveon.Org or some similar leftist outfit?

The great majority of the money spent on the war goes right back into the American economy--salaries, contracts, equipment purchases, etc. Thus, it helps more than it hurts in an economic sense.

[oregonpackfan]

The great majority of the money spent on the war goes right back into the American economy--salaries, contracts, equipment purchases, etc. Thus, it helps more than it hurts in an economic sense.[/quote]

That theory is a mistaken myth, Texas. Studies have shown that when you compare other souces of employment, be they health care, transportation, education, etc. the area that creates the LEAST number of jobs is the military.







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The Economic Costs of the Iraq War
By Dean Baker
t r u t h o u t | Columnist

Monday 07 May 2007

There have been several occasions where President Bush rejected suggestions that the United States adhere to the Kyoto agreement's targets to prevent global warming because this would hurt economic growth. This argument was the end of the conversation.

President Bush is right to be concerned about economic growth. It provides a basis for rising living standards. But his concern that reducing greenhouse gas emissions may slow growth is inconsistent with his apparent lack of concern about the economic damage done by the war in Iraq.

While it may be news to the general public, in standard economic models, wars and military spending almost always slow growth and lead to job loss. The reason that wars lead to slower growth in these models is essentially the same as the reason that standard models project slower growth due to restricting greenhouse gas emissions: The government is diverting resources from its most efficient uses. This makes the economy less efficient, therefore it grows less rapidly and creates fewer jobs.

People often think that military spending creates jobs because people get hired to build weapons and supply the military. But we can think of programs to combat global warming in exactly the same way. Instead of taxing people to discourage them from using gas or electricity, we can simply pay them to buy more fuel efficient cars or make their homes more fuel efficient.

If the government pays people either to build weapons or to be more energy efficient, it needs the money to cover the costs. It can either raise taxes to get the money or it can borrow. If it raises taxes, then it's easy to see how higher taxes can pull money out of people's pockets and slow the economy. However, if it borrows (as it is doing now to pay for the war), then it leads to higher interest rates. Higher interest rates typically reduce house and car buying and lead to a higher dollar, and therefore, a higher trade deficit. Reduced house and car purchases and a larger trade deficit slow economic growth and job creation.

The basic story for both the war and curtailing greenhouse gas emissions is the same: Standard economic models predict slower growth and fewer jobs. The only difference is that the politicians and the media have chosen to talk about the economic impact of policies designed to reduce greenhouse gas emissions, while completely ignoring the economic impact of the Iraq war and higher military spending more generally.

In order to better inform the debate, the Center for Economic and Policy Research commissioned the econometric forecasting firm Global Insight to simulate the impact of a sustained increase in military spending equal to one percentage point of GDP, or $140 billion annually at present (approximately the same increase that has taken place since 2001). Global Insight was selected because it has a highly respected econometric model and is one of the oldest econometric forecasting firms in the country (it was formed from the merger of WEFA and DRI).

The model showed that after an initial stimulus, the impact of higher military spending turns negative around the sixth year. By the tenth year, the economy is projected to have 464,000 fewer payroll jobs in the high-spending scenario. If the higher spending persists for 20 years, the simulation shows job loss reaching 670,000. The job loss is concentrated in construction and manufacturing, with the construction sector projected to lose 144,000 in the tenth year and the manufacturing sector 95,000. By the twentieth year, the number of construction jobs is projected to be 211,000 lower in the high military spending scenario.

The projections also show a considerably larger trade deficit, which would add roughly $1.8 trillion (in 2007 dollars) to the foreign debt in 20 years (approximately nine percent of GDP). In the twentieth year, car sales are projected to be 730,000 lower in the high military spending scenario, while housing starts and sales are projected to be down by 39,000 and 287,000, respectively.

While projections based on the Global Insight model should not be treated as the holy writ, most econometric models would show a comparable impact from higher military spending. Whether the war is worth these costs depends on what we think of the war.

What does not make sense, however, is to push a discussion of curtailing greenhouse gas emissions off the table because the necessary policies could slow growth, while the negative economic effects of the Iraq war or higher military spending never even gets mentioned. It is totally reasonable to be concerned about the impact of important policies on the economy and jobs, however this concern should apply to all policies, not just the policies that our political leaders don't like.

Dean Baker is the co-director of the Center for Economic and Policy Research (CEPR). He is the author of The Conservative Nanny State: How the Wealthy Use the Government to Stay Rich and Get Richer (www.conservativenannystate.org). He also has a blog, "Beat the Press," where he discusses the media's coverage of economic issues. You can find it at the American Prospect's web site.

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[texaspackerbacker]

The great majority of the money spent on the war goes right back into the American economy--salaries, contracts, equipment purchases, etc. Thus, it helps more than it hurts in an economic sense.[/quote]

That theory is a mistaken myth, Texas. Studies have shown that when you compare other souces of employment, be they health care, transportation, education, etc. the area that creates the LEAST number of jobs is the military.

-------------------------------------------------------------------------------------

Granted, Oregon, and just why do you think that is? It is because many military people make just over subsistence level incomes. It is similar to welfare spending/social programs/whatever. ANY money injected gives some degree of stimulation to the economy. However, the money that has the least opportunity to trickle down does the least stimulation. That is a point that is usually lost on liberals when discussing tax cuts across the board, which by the nature of their fairness, benefit those with bigger incomes and subsequent bigger tax burdens more than they benefit lower levels.

I've heard that argument about global warming too--that the technology to "fix" it will stimulate the economy. It might make a minor dent, but not much when you consider the extremely much higher tax burden on people, as well of the significantly higher prices of just about everything caused by the "cure" to the idiocy of the manmade g.w. theory.

[Deputy Nutz]

I don't suppose you guys know WHO is behind that website. Possibly Moveon.Org or some similar leftist outfit?

The great majority of the money spent on the war goes right back into the American economy--salaries, contracts, equipment purchases, etc. Thus, it helps more than it hurts in an economic sense.

Sorry, your wrong. If this was the case, our Gross National Product would have sent our economy through the roof, in turn trickling down jobs and financial security to Americans. We are now basically in the beginning of a recession.

This is the 1940s anymore where factory jobs could put a family of four in a nice middle class neighborhood with a Ford Station Wagon in the driveway. He have sent these factory jobs to other countries, or have minimized the cost of labor to maximize profit regardless if these jobs keep pace with inflation an the cost of living. American workers certainly won't get a raise comparable to % of increase in the cost of gasoline per gallon.

[texaspackerbacker]

I'm assuming you left out a "not" in your last paragraph, Nutz. You also should have used the word "not" when you said we are basically in the beginning of a recession. Recession is a clearly defined economic term which has NOT occurred--two consecutive quarters of economic downturn--which we have NOT even had one.

You seem to be talking about the old argument the we are worse off because we have evolved from an industrialized economy to a service and distribution oriented economy. That argument, however, simply is belied by both the macro-economic situation and the lifestyle of people in areas where those industries have faded away. You find a helluva lot more of those people thriving than suffering.

[The Leaper]

The great majority of the money spent on the war goes right back into the American economy

Like the contract we are giving to Airbus to build our new fueling planes for the military instead of Boeing?

Sorry Tex. I'm fairly conservative, but anyone with half a sense of financial matters can recognize that the war in Iraq is taking a serious toll on our economic resources when you consider the vast challenges we face in several key areas in the upcoming decades.

[Tyrone Bigguns]

The great majority of the money spent on the war goes right back into the American economy

Like the contract we are giving to Airbus to build our new fueling planes for the military instead of Boeing?

Sorry Tex. I'm fairly conservative, but anyone with half a sense of financial matters can recognize that the war in Iraq is taking a serious toll on our economic resources when you consider the vast challenges we face in several key areas in the upcoming decades.

OH, no. Leaper has been brainwashed by the liberal media as well. Can they be stopped.

Leaper, you must immediately turn on rush on the radio, Fox on TV, and start reading ANYTHING BY KRISTOLL. DO IT NOW!!! For the love of god.

It is your only hope to returning to a good, normal american.

[red]

The great majority of the money spent on the war goes right back into the American economy

Like the contract we are giving to Airbus to build our new fueling planes for the military instead of Boeing?

Sorry Tex. I'm fairly conservative, but anyone with half a sense of financial matters can recognize that the war in Iraq is taking a serious toll on our economic resources when you consider the vast challenges we face in several key areas in the upcoming decades.

OH, no. Leaper has been brainwashed by the liberal media as well. Can they be stopped.

Leaper, you must immediately turn on rush on the radio, Fox on TV, and start reading ANYTHING BY KRISTOLL. DO IT NOW!!! For the love of god.

It is your only hope to returning to a good, normal american.

the funny thing is you know the old bastard is going to now label leaper a lefty because he doesn't agree with the extreme rights wacked out preception on one thing

[Tyrone Bigguns]

The great majority of the money spent on the war goes right back into the American economy

Like the contract we are giving to Airbus to build our new fueling planes for the military instead of Boeing?

Sorry Tex. I'm fairly conservative, but anyone with half a sense of financial matters can recognize that the war in Iraq is taking a serious toll on our economic resources when you consider the vast challenges we face in several key areas in the upcoming decades.

OH, no. Leaper has been brainwashed by the liberal media as well. Can they be stopped.

Leaper, you must immediately turn on rush on the radio, Fox on TV, and start reading ANYTHING BY KRISTOLL. DO IT NOW!!! For the love of god.

It is your only hope to returning to a good, normal american.

the funny thing is you know the old bastard is going to now label leaper a lefty because he doesn't agree with the extreme rights wacked out preception on one thing

You either 100% onboard with Tex, or you are against him.

[falco]

The great majority of the money spent on the war goes right back into the American economy

Like the contract we are giving to Airbus to build our new fueling planes for the military instead of Boeing?

Sorry Tex. I'm fairly conservative, but anyone with half a sense of financial matters can recognize that the war in Iraq is taking a serious toll on our economic resources when you consider the vast challenges we face in several key areas in the upcoming decades.

OH, no. Leaper has been brainwashed by the liberal media as well. Can they be stopped.

Leaper, you must immediately turn on rush on the radio, Fox on TV, and start reading ANYTHING BY KRISTOLL. DO IT NOW!!! For the love of god.

It is your only hope to returning to a good, normal american.

the funny thing is you know the old bastard is going to now label leaper a lefty because he doesn't agree with the extreme rights wacked out preception on one thing

You either 100% onboard with Tex, or you are against him.

you got it wrong tyrone

if you're not 100% with tex, you're against AMERICA

[Tyrone Bigguns]

The great majority of the money spent on the war goes right back into the American economy

Like the contract we are giving to Airbus to build our new fueling planes for the military instead of Boeing?

Sorry Tex. I'm fairly conservative, but anyone with half a sense of financial matters can recognize that the war in Iraq is taking a serious toll on our economic resources when you consider the vast challenges we face in several key areas in the upcoming decades.

OH, no. Leaper has been brainwashed by the liberal media as well. Can they be stopped.

Leaper, you must immediately turn on rush on the radio, Fox on TV, and start reading ANYTHING BY KRISTOLL. DO IT NOW!!! For the love of god.

It is your only hope to returning to a good, normal american.

the funny thing is you know the old bastard is going to now label leaper a lefty because he doesn't agree with the extreme rights wacked out preception on one thing

You either 100% onboard with Tex, or you are against him.

you got it wrong tyrone

if you're not 100% with tex, you're against AMERICA

Do you think i'm stupid?

THat was a given.

Tex=AmeriKKKa.

[Kiwon]

Hmm....I wonder how many mosques, Islamic schools and madrasahs the government can build for $700 million in Washington County, Oregon?

Here's a guy that will gladly help with the planning:

http://www.memritv.org/clip/en/1739.htm

[falco]

Hmm....I wonder how many mosques, Islamic schools and madrasahs the government can build for $700 million in Washington County, Oregon?

Here's a guy that will gladly help with the planning:

http://www.memritv.org/clip/en/1739.htm

right...because that totally applies to the topic of discussion.