The Associated Press

The U.S. spends more than $12 billion a month on operations in Iraq.

Featured Topic | Posted 27 weeks 4 days ago

Was the Iraq war worth $3 trillion?

War is costly. But the Iraq war might be more costly than many people predicted. Former Clinton administration economist Joseph Stiglitz and Harvard budget expert Linda Bilmes estimate the final tab on Iraq will be an eye-popping $3.2 trillion.

It's one thing to focus on costs, but what about benefits? Was the war worth the cost? Have there been any advantages? Should the war in Iraq be judged on purely economic terms?

Read More

Ben likes: Weighing the costs and benefits

Tim Kane/Heritage Foundation

When I confronted Stiglitz about ignoring the potential benefits of the Iraq war during a 2006 BBC debate, he countered that the paper is merely the first in a conversation, hinting that assessing benefits is more difficult. Yet his paper makes no such hedges, concluding bluntly, “Expenditures on the Iraq war have no benefits [for America].”

Elsewhere, Stiglitz and Bilmes claim that the only clear beneficiaries of the war are “oil companies” and “certain defense contractors.” No mention of the Kurds or the Shiites. No mention of the widespread winds of change in Libya, Lebanon, Syria, Egypt and Saudi Arabia. This is willful ignorance, not the “cool, hard analysis of the kind for which economics has long earned a reputation” that the authors pretend.

Read More

Joel likes: Iraq/Recession

Matthew Yglesias/The Atlantic

If we could go back in time and invest the hundreds of billions spent in Iraq on something more productive, we'd be in better economic shape today. Alternatively, if we could take the vast sums we're currently spending in Iraq and somehow frictionlessly transmute that into some kind of better-designed domestic stimulus, that would help the economy over the short run. But in terms of actually available policy options (the time machine would be handy, though) bringing the war to an end, though strategically vital and good for America's long-term economic outlook, doesn't seem to me to be something likely to help the country with our short-term economic challenges.

Read More

Where do you stand on this issue?

Click on the graph to cast your vote.
average
vote
your vote