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Derrick Crowe

Derrick Crowe

Posted: May 30, 2010 01:45 PM

The Iraq and Afghanistan Wars Mutilated Our Economy

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$1,000,000,000,000.00

As of today, that's how much we've spent just in direct costs so far on the stupid wars in Iraq and Afghanistan.

One trillion dollars, gone. And we're just getting warmed up...there are trillions more in future direct and indirect costs coming.

These two wars mutilated our economy. There's no other way to say it. We've taken a huge amount of wealth and done things with it that damaged the economy. People are out of work and hurting today because we chose to launch two wars that aren't worth the cost.

The most glaring example of this dynamic is the use of hundreds of billions of taxpayer money to invade and occupy Iraq, which led to higher oil prices, which hit taxpayers again in their pocketbooks.

Many other examples exist: We pay to train American kids to kill in Afghanistan. We pay to ship them overseas where they die or get injured. We pay for medical care for the survivors. Their families lose both the wounded's income and often lose additional income when loved ones reduce work hours to stay home and care for the wounded.

The list of these vicious cycles goes on and on. In all cases, our government actually charges us for the privilege of having an even harder time making it in this tough economy.

Actually, it's worse than that. The government charges us for the privilege of having a tough economy in the first place.

According to the Center for Economic and Policy Research's (CEPR) Dean Baker:

"In standard economic models, defense spending is a direct drain on the economy, reducing efficiency, slowing growth and costing jobs. ...[S]tandard economic models...project that the increase in defense spending since 2000 will cost the economy close to two million jobs in the long run."

Baker's point in his article was that groups that scream about potential "job loss" from government "interference" never put that "loss" in any context. Government spending does stimulate economic activity during a downturn. The question is, how stimulative is one type of spending versus another? So let's make sure we're playing fair and put this in some perspective in terms of job creation.

It turns out that, excluding tax cuts for consumption, war spending is the least stimulative type of government spending.

An October 2007 study by the Political Economy Research Institute (PERI) found that per $1 billion invested in the following fields, you create wildly different numbers of jobs:

  • Defense: 8,555 jobs
  • Construction for home weatherization/infrastructure: 12,804 jobs
  • Health care: 12,883 jobs
  • Education: 17,687 jobs
  • Mass transit: 19,795 jobs

So if you take $1 billion in taxpayer dollars and spend it on war versus on building energy efficient homes and other infrastructure, the opportunity cost for that spending is 4,249 potential jobs. Spending it on war versus mass transit costs you 11,240 potential jobs.

Now consider that $1 trillion is one thousand billion. Because we're spending so many billions--now trillions--of dollars on these two wars, we're losing hundreds of thousands, possibly millions, of potential jobs.

PERI concludes that:

...[B]y addressing social needs in the areas of health care, education, education, mass transit, home weatherization and infrastructure repairs, we would also create more jobs and, depending on the specifics of how such a reallocation is pursued, both an overall higher level of compensation for working people in the U.S. and a better average quality of jobs.

These lost potential jobs aren't even the whole picture. We also lose the fruits of spending that money in more productive ways, which, according to the National Priorities Project, include:

  • 188,536,667 Students receiving Pell Grants of $5550 OR
  • 8,139,680 Affordable Housing Units OR
  • 461,193,337 Children with Health Care for One Year

But hey, at least these wars are working out well for BP, right?

Had enough? Help us get people talking about the cost of these wars by playing using our new Facebook app to show us your trillion dollar plan, and share it with your friends.

 

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07:41 PM on 06/02/2010
Here is who we had to pay to interrogate them before we shot them. Not quite 1 Billion.
No one is watching D of D. You should. http://www.defense.gov/Contracts

No one is watching the flood of contracts at D o D.

Mission Essential Personnel, Columbus, Ohio, was awarded on May 7 a $679,000,000 indefinite-delivery/indefinite-quantity with cost-plus-award fee contract. This contract action seeks the continuation of linguist/translation services which provide our forces with the ability to communicate effectively with the local populace, gather information for force protection, and interact with foreign military units in Afghanistan. Work is to be performed in Afghanistan (86.202 percent); Bahrain (0.926 percent); Djibouti (0.102 percent); Germany (2.081 percent); HOA (1.230 percent); Italy (0.92 percent); Kenya (0.174 percent); Kirgizia (0.042 percent); Qatar (0.163 percent); Redstone Arsenal, Ala. (0.002 percent); Camp Pendleton, Calif. (1.235 percent); Los Angeles, Calif. (0.002); Atlanta, Ga. (0.002 percent); Fort Gordon, Ga., (4.743 percent); Hunter Army Airfield, Ga. (0.504 percent); Kaneohe Bay, Hawaii (0.401 percent); Camp Lejeune, N.C. (0.501 percent); Fort Bragg, N.C. (0.127 percent); Nashville, Tenn. (0.001 percent); Fort Hood, Texas. (0.343 percent); San Antonio, Texas. (0.0104 percent); Arlington, Va. (0.027 percent); Fort Belvoir, Va. (0.144 percent); and Quantico, Va., (0.017 percent
10:08 AM on 06/01/2010
This is an absurd false choice. We increased the Publicly Held Debt by going to war, Just because we spent the money on the wars does not mean the money would have been spent on the items in the article or anything else for that matter. The Wars did not cause this financial and economic meltdown. A housing bubble and concomitant collapse is why we are in this mess and the causes in part are misguided liberal policies that allowed millions to get mortgages that they never should have gotten, More fantasyland concepts that rival Disney World
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Ed C Atlanta
Justice for all,,It's an Entitlement
12:46 PM on 06/01/2010
and the wars had nothing to do with the deficit,,please,,, when you spend money from the treasury for the wars ,, that is not contained in the budget,, where does that money come from? it wasnt only the liberals as you say that were responsible,, the blame for the housing bubble was due in main part by coporate greed and greed alone,, why you give home loans to people you know cant repay them?,, because as soon as they default,, you get the assets back and sell them again,, the same thing as car dealer repossesing a car..dont blame all on the so -called liberal policies,,, it couldnt have happened without the greedy bankers and hedgefunds.
08:14 PM on 06/01/2010
I didnt say the wars had nothing to do with the deficit, See my second sentence, The false choice was saying that if we did not spend it on the Wars we would have spent the money on other things, Not necessarily
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mw21
flyfishing, education, grandkids
12:47 PM on 06/01/2010
And you don't think the money spent on these wars had anything to do with anything? In true head-in-the-sand-conservative fashion you choose to count anything and everything except the cost of war. Yes, the housing bubble was a contributor but nothing compared to the trillion plus (and growing!) spent in Iraq and Afghanistan. And "misguided libreral policies"--what? the liberals caused it? This was greedy corporate profiteering. Pick your party, they are both responsible.
08:22 PM on 06/01/2010
The Primary factor in our financial crisis which in turn caused the economic downturn was the housing bubble and had nothing to do with the Wars. The two periods when we had the lowest unemployment in the last 80 years were during WWII and the Viet Nam War, Without the housing collapse and the resulting banking crisis we would have been going on with unemployment rates of around 5% which was what we had during the period of the Wars before the housing collapse. I agree with you on the greedy corporate profiteering . Every credible economist I have seen testify before Congress in the last 2 years has said that the housing bubble caused the recession,
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10:02 AM on 06/01/2010
And, most costly, we've paid to bring 5,462 (as of 5/30/10) of our finest home and bury them.
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HUFFPOST SUPER USER
ThePeoplesKey
Writer/General Disreputable Rogue
08:59 AM on 06/01/2010
I think you're overlooking the positive aspects of the military industrial complex: My fat religious, ignorant, gun toting, uneducated, cud chewing, unemployed, republican neighbors who voted for bush/cheney TWICE, feel safer.

They may be losing their home to foreclosure, unable to afford medical care and soon to be starving, but, by golly, at least we won't be killed by terrorists . . .
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HUFFPOST SUPER USER
PartOfTheSolution
corruption rules
02:50 AM on 06/01/2010
For those who can understand this issue better in comic book format, try reading this graphic novel, which came out in 2004 and no publisher would touch. This is not a new story, but it's taken the media 5 extra years to begin to talk about the scam and the farce that is the invasion of Iraq!

http://www.tatersandgators.com
02:06 AM on 06/01/2010
Well the good news is, we will soon get to pump more into a war with Iran, and maybe some more to bail Israel out of their latest folly. In 100 years, we will be remembered as a once great empire that sent all its jobs overseas, and just focused on providing money to war contractors, with loans from China, who will be the ones writing the history books.
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HUFFPOST SUPER USER
bllnsinchnge
peace, markets, freedom
09:51 AM on 06/02/2010
Reminds you of the fall of Rome, France and Spain. Empires are too big not to fail. We marched right in there, we can march right out. I only can imagine what that money would have done if saved and invested in technology and business growth. For good reason the country agreed to hunt down terrorists, but now the military is funding foreign police academies and building schools for Afghans. Meanwhile Kansas City Missouri closes 26 schools....
12:00 AM on 06/01/2010
Yeah, they won. They are able to adopt to harsh conditions because they always have. Americans cannot. Now we have had our economy ruined and defeated, not to mention the Americans who died for nothing.
09:57 PM on 05/31/2010
Iraq is what happens when you allow emotion to guide your actions, sort of like marriage.
01:58 AM on 06/01/2010
Nice!
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HUFFPOST SUPER USER
Coloradogary
09:18 PM on 05/31/2010
14 Trillion dollars lost in a 65 Trillion dollar derivatives scam is the true economy mutilator.

The civilian jobs lost were from the financial debacle, not fro military spending.

Put your anger and disgust where it truly belongs. Deregulation of the financial markets.
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mw21
flyfishing, education, grandkids
12:48 PM on 06/01/2010
Why does it have to be either or?
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HUFFPOST BLOGGER
Firas Al-Atraqchi
Journalist, assoc professor, musician; sci-fi geek
08:34 PM on 05/31/2010
I also want to add when the US military invaded, Iraq had $28 billion in reserves which were seized. How was that spent? Furthermore, Bremer's Order 39 allowed foreign companies to invest in Iraq and retrieve 100% of the profit. Nothing for Iraq.

Tonnes of heavy machinery were smuggled out to Iran and Jordan; millions of barrels of oil were siphoned off to the Revolutionary Guard in Iran via the southern oil fields and the Shatt Al Arab waterway. This left Iraq's infrastructure in shambles.

Remember, Powell told Bush, if you break it, you pay for it. Iraq is broken and will continue to be so.
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HUFFPOST BLOGGER
Firas Al-Atraqchi
Journalist, assoc professor, musician; sci-fi geek
08:33 PM on 05/31/2010
Mr. Crowe, Iraq was not a barren wasteland crawling with scorpions and desert brush. It was a nation of 24 million people. Therefore, your above statement is incomplete. A better way to write your sentence would be:

The most glaring example of this dynamic is the use of hundreds of billions of taxpayer money to invade and occupy Iraq, which killed anywhere between 160,000 and 1.4 million Iraqis who had nothing to do with the 9/11, Al-Qaeda or WMDs. The invasion devastated Iraq's resurfacing economy, which had been crippled by 13 years of sanctions. It also buried what was left of the most advanced medical health care system in the Middle East and North Africa. Hundreds of Iraqi scientists, professors, teachers, and deans of universities were assassinated in the vacuum created after Bremer's disbanding of the Iraqi army. Since 1940, successive Iraqi governments had sent these people to the west to gain advanced degrees in neurology, medicine, agriculture, remote sensing, electrical and mechanical engineering and so on.


All of this has also burdened the US economy in several ways, most notable of which is the introduction of "civilian" contractors to rebuild Iraq's infrastructure. With nothing really rebuilt, they overcharged the US government, which in turn burns the American taxpayer.

I agree that the Iraq and Afghanistan wars are "mutilating" the US economy, but to overlook the impact of these wars on the very countries involved is dishonest.
08:32 AM on 06/01/2010
Thank you for your clarification.

My clarification?

Get precise with our words.

There are no "wars."

No "war" has ever been declared by Congress in either Iraq or Afghanistan. IF we employed the correct words, i.e., "military invasion to find WMDs in Iraq," then our ears would hear the absurdity. While "cumbersome," precise language offers awareness and clarity and questions.

However, the uber-patriotic-inducing, testosterone-fueled, attention-getting word, "war," works just as King George and Prince Dick desired. Now if only our President today would educate by not using the word and state the reason why.

Ironically, words and precise language are our currency too. Thank you, Mr. Crowe, for your words on this topic.
10:29 AM on 06/01/2010
Now, this is well stated! Thanks
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HUFFPOST SUPER USER
offred
A biocitizen is 3/5 of a corporate citizen
07:23 PM on 05/31/2010
Well said, Mr. Crowe.

Bravo!
06:20 PM on 05/31/2010
Apparently, according to our government, we are at war everywhere, except when we are asked to treat captured individuals as prisoners of war, then we are at war nowhere.

Ahhh, how convenient. Too bad there is no way to make the costs of waging "war" on 1 1/2 billion people go away.

This is a huge waste for us. Clearly, our military wants to be able to control the world, except maybe for actual areas of high risk, like Russia or China. This has turned out to mean that the actual country we live in, the USA, must continually have the average quality of life spiraling downhill.

We can always blame this on the unions. Less unions, more Massey!! No unions, more BP!!! Keep them campaign contributions coming!
06:17 PM on 05/31/2010
Seriously?

where are the JOBS Promised from TARP and the Stimulus Act AND TWO Jobs BILLS?
787 Billion Tart
700 Billion Stimulus Act
200 Billion 2 Jobs Bills

in one year?

Yeah, the 'war' drained the economy
add in PIPP, TALF, AIG, BM, Maiden I,II,III Unemployment extensions, Car Credit, ear marks
and Health Care

Yeah, the 'war'...
06:22 PM on 05/31/2010
Wasting money in one place does not justify wasting it in another.
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mw21
flyfishing, education, grandkids
12:52 PM on 06/01/2010
Face it, if you like (support) war you won't count it against anything, especially economic issues. Conservatives always like to exempt war in discussions of fiscal responsibility. Blaming something else is a poor strategy.
05:59 PM on 05/31/2010
An ancient piece of wisdom:

"Live by the Sword, Die by the Sword"

America certianly lives by the sword...