We Can't Afford This War Anymore

I have been against the Iraq war from the very beginning. However, my arguments didn't rest on the lofty perches of ethics or morals; they rested on the far cruder cost benefit analysis of war. The bottom line is war costs far more than it is worth economically. And the longer this war progresses, the more expensive it gets.

According to the Congressional Budget office, this war has cost $752 billion dollars. Let that figure sink in -- $752 billion dollars. And it's getting more expensive. According to the same report, the yearly increase in costs are increasing at a high rate. In 2003 total appropriations for the war were $76 billion. In 2007 they were $165 billion. And the increase in cost is largely from the ongoing operations. Operation and Maintenance costs were $46 billion in 2003 and $92 billion in 2007 -- a doubling of costs within 5 years. In addition, procurement expenses over the same period of time increased from $10 billion to $51 billion. So, the longer this war progresses, the more expensive in gets.

Let's place this cost in a larger perspective. Here is a chart of total Federal expenditures and receipts since 2001:

Notice the federal government has never even come close to balancing a budget for the entire duration of the "MBA President."

Also notice the mammoth amount of debt the Federal Government has issued over the entire time in office of the "MBA President."

Here is a list of total debt outstanding at the end of the government's fiscal year:

09/30/2007 $9,007,653,372,262.48
09/30/2006 $8,506,973,899,215.23
09/30/2005 $7,932,709,661,723.50
09/30/2004 $7,379,052,696,330.32
09/30/2003 $6,783,231,062,743.62
09/30/2002 $6,228,235,965,597.16
09/30/2001 $5,807,463,412,200.06
09/30/2000 $5,674,178,209,886.86

To place that in perspective, total debt as a percentage of GDP increased from 57% to 64% under Bush's tenure.

And in the current fiscal year, we're on target to have a record deficit (h/t Calculated Risk).

The Treasury Department says the federal deficit through the first half of this budget year is at an all-time high, underscoring the pressure the budget is coming under as the economy slumps.

The US economy is facing a financial crisis right now -- the worst crisis since the great depression. Yet we continue to spend money for Bush's Iraq folly at a record pace. Whoever gets elected next year is going to have an extremely unpleasant first conversation with the Treasury Secretary. The conversation will start with, "Mr. President, we're screwed financially."