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The Ongoing Cost of War

The early months of the Obama Administration are likely to be dominated by debates over massive amounts of new domestic spending. But we also will be continuing to pay another big bill. Mark Thompson has an illuminating look at the more than $1 trillion we will soon have spent fighting the wars that have started since 9/11.:

Even after adjusting for inflation, that's four times more than America spent fighting World War I, and more than 10 times the cost of 1991's Persian Gulf War (90 percent of which was paid for by U.S. allies). The war on terror looks set to surpass the cost the Korean and Vietnam wars combined, to be topped only by World War II's price tag of $3.5 trillion.

The cost of sending a single soldier to fight for a year in Afghanistanor Iraq is about $775,000 — three times more than in other recent wars, says a new report from the private but authoritative Center for Strategic and Budgetary Assessments. A large chunk of the increase is a result of the Administration cramming new military hardware into the emergency budget bills it has been using to pay for the wars.

Of course, as Mark notes, the real cost to this country of these wars is the nearly 5,000 troops who have lost their lives, and the many more who have been wounded. In that sense, that trillion dollars is merely a down payment:

The trillion-dollare figure does not, for example, include long-term health care for veterans, thousands of whom have suffered crippling wounds, or the interest payments on the money borrowed by the Federal government to fund the war.

UPDATE: Commenter 53_3 asks:

I wonder if you know what is being spent on the "contractors"?

After all, they get paid far more then the average soldier, there are more of them in Iraq than there are soldiers, and there is no oversight whatsoever that I have ever heard of regarding the money that they get.

And, I might point out, the CEO of Blackwater has been on the list of richest men in the world for a while.

I emailed our Pulitzer Prize-winning Pentagon correspondent Mark Thompson, and here's what he has to say:

I asked Steve Kosiak, the fellow who did the study for CSBA, if the tripling of spending on a per-soldier basis was, in fact, due to the high reliance of the US military these days to hire contractors to do what had, in the past, been done by other soldiers. He said, no, that the big hike in per-soldier spending is due to weapons and other stuff -- not necessarily linked to the war -- being crammed into these supplemental appropriations. I've noted in my travels to Iraq that the troops do indeed eat well, and we certainly don't begrudge them that. And while some, like Blackwater guards, make good money --$100,000 or more a year -- most contractors employed by the US military in both Iraq and Afghanistan tend to be folks from India, Pakistan and the Philippines, who are cooking and ladling the food, doing the laundry etc. The CBO estimated last summer that these contractors cost US taxpayers about $100 billion, or roughly 20 percent of the war's to-date cost.

UPDATE2: The contractor report.

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  • 1

    Verily, we are screwed.

  • 2

    Obama just might end up portraying was savings as the perfect way to pay for his uber-stimulus...

    http://www.political-buzz.com/

  • 3

    See the problem is that what most Americans think of as the cost of war, the current administration regards as a simple tranfer of funds. After all, it isn't like the money disappears. It simply passes from taxpayers to the various contractors and vendors who help keep the machinery greased and running.

  • 4

    I think Eisenhower had a term for that PD. And a warning.

  • 5

    Maybe that price tag will give some perspective to Obama's trillion dollars to stimulate the economy and drive energy transformation.
    .
    The first Gulf War seems amazingly expensive. 1/10th the cost, for a few weeks war?
    .
    I would have guessed that a large share of the increase in per-soldier costs is the amount we are paying those we've outsourced so many of the activities traditionally performed by the military.

  • 6

    KT, you forgot to say, "For everything else there's MasterCard." Words fail to describe this kind of malfeasance. January 20 can't come soon enough.

  • 7

    "A large chunk of the increase is a result of the Administration cramming new military hardware into the emergency budget bills it has been using to pay for the wars."
    .
    KT:
    .
    I wonder if you know what is being spent on the "contractors"?
    .
    After all, they get paid far more then the average soldier, there are more of them in Iraq than there are soldiers, and there is no oversight whatsoever that I have ever heard of regarding the money that they get.
    .
    And, I might point out, the CEO of Blackwater has been on the list of richest men in the world for a while.
    .
    I'm curious to see what you have to say about this.

  • 8

    It is still amazing what a few dollars in the hands of a terrorist can do. The cost benefit of this type of war goes to the terrorist. The costs are both financial and our liberties. How can the terrorist lose? Decades ago I read an interesting book "The Wasp" that stated as much. What is the answer? I don't know, but I don't think war is the answer.

  • 9

    Kathy and Fifty, this is from August
    .
    "This year, spending on contractors, who protect diplomats, civilian facilities and supply convoys, is projected to exceed $1.2 billion, according to federal contract and budget data obtained by USA TODAY. Most of that bill — about $1 billion —is State Department spending, which is up 13% over 2007. The remaining $200 million covers Pentagon contracts."

  • 10

    old1conserve:
    .
    I remember that OBL said that if we give up our freedom in the frenzy to defeat him, he will have won.
    .
    OBL seems to have gotten this close .
    .
    Of course, there is this nugget, too:
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    "I have seen the enemy and they are us"
    .
    But best of all, I like Will Cuppy's description, equally apt if a few substitutions were made:
    .
    "The age of dinosaurs ended because it was all a mistake and had gone on too long anyway."

  • 11

    PNNTO:
    .
    I see, but it doesn't make sense. How can the contractors, who are unit for unit far more expensive than soldiers, and outnumber them in Iraq, cost only 1/800th as much?
    .
    It's not adding up.

  • 12

    We should expect some much-needed savings as troops levels and (presumably) military involvement in Iraq is ratcheted-down. However, Obama plans to increase our presence in Afghanistan. Many of us argued that there would not be a military solution in Iraq, and that is probably right-- yet it appears we are now expecting one in Afghanistan. What exactly are our goals there and how will more troops achieve them? And, ultimately, can we afford it?

  • 13

    We need Andy Wahl in here telling us how it's actually perfectly all right for us to spend this much on war, but how we daren't spend anything on infrastructure because that would be theft.

  • 14

    Also, does anyone remember McCain's "Victory in Iraq will save us so many dump trucks full of money that we can pay off our debts" plan?
    .
    I wonder how this post would work into that?

  • 15

    "I think Eisenhower had a term for that PD. And a warning."
    .
    Yeah, well, the last President to question the MIC/intelligence agencies didn't fare so well. I guess that was a warning too.
    .
    "The very word "secrecy" is repugnant in a free and open society; and we are as a people inherently and historically opposed to secret societies, to secret oaths and to secret proceedings. We decided long ago that the dangers of excessive and unwarranted concealment of pertinent facts far outweighed the dangers which are cited to justify it. Even today, there is little value in opposing the threat of a closed society by imitating its arbitrary restrictions. Even today, there is little value in insuring the survival of our nation if our traditions do not survive with it. And there is very grave danger that an announced need for increased security will be seized upon by those anxious to expand its meaning to the very limits of official censorship and concealment. That I do not intend to permit to the extent that it is in my control. "
    -- J.F.K., April 27, 1961.

  • 16

    The solution in Afghanistan doesn't appear to be war either. This whole scene reminds me of the Wack-the-Mole game. Clearly, the Pakistan army is supporting terrorists all over the region. There has got to be a dipomatic solution. Sending troops into other countries is going to be a stop-gap measure only.

  • 17

    .
    "The trillion-dollar figure does not, for example, include long-term health care for veterans, thousands of whom have suffered crippling wounds, or the interest payments on the money borrowed by the Federal government to fund the war."
    .
    .
    Those costs will be substantial. In January 06, economists Bilmes and (Nobel Prize winner) Stiglitz tried to include those costs and estimated the Iraq war would cost $2 trillion. In November of that year, they revised that number to $2.6 trillion:
    .
    .
    "In January, we estimated that the true cost of the Iraq war could reach $2 trillion, a figure that seemed shockingly high. But since that time, the cost of the war – in both blood and money – has risen even faster than our projections anticipated. More than 2,500 American troops have died and close to 20,000 have been wounded since Operation Iraqi Freedom began. And the $2 trillion number – the sum of the current and future budgetary costs along with the economic impact of lives lost, jobs interrupted and oil prices driven higher by political uncertainty in the Middle East – now seems low."
    .
    .
    Since Nov 06 we've seen the number of US deaths and injuries nearly double. I wonder if Bilmes and Stiglitz would revise their projections higher today.

  • 18

    I am sure this is a bizarre post, but what the H.

    The economic slow down is world wide, including drastic reductions in oil revenue. This has also got to be affecting fund raising for the terrorists and giving countries who may not be terribly fond of the US rethinking their strategies, because in some cases they do not have the funds to mount extended campaigns or expensive strikes.

    There are some of you who no doubt may say, yes but they do not care about economics, is a war of the mind and heart. But often their financial sources may care,as thye do not want to live meager lives just to provide ammunition for a cause. In some ways the financial meltdown we have caused may actually benefit us in the war on terror. Ironic?

    Of course who knows what happens if Pakistan and India really go at it in the next few weeks. A quick nuclear exchange and all bets are off. Happy New Year?

  • 19

    Correction: "making countries who may not be terribly fond of the US rethink."... sorry typing too fast in an effort to get out of the house to do some gift exchanges at the stores.

  • 20

    Would it be more cost-effective, and at the same time, help out the manufacturers and the economy to simply spend those billions on consumer items to donate to the people of the region to mollify, if not pacify - stupify? - the entire middle-east region? Look how it's worked on Americans: tell me we're not too fat, lazy and contented to defend against the encroachment of our own government. It would at least be less deadly all the way 'round.

  • 21

    It is still amazing what a few dollars in the hands of a terrorist can do.
    .
    The cost of the 9/11 attacks was said to be about 100,000 dollars. And 19 "martyrs." one eighth of one US soldier year in a war trumped up by fearmongering lies based on that attack.
    .
    Heckuva job Bushie. You couldn'ta done better as a fifth columnist.

  • 22

    WE'RE NUMBER ONE!* WE'RE NUMBER ONE!*

    *At starting pointless, ruinous wars.

  • 25

    KT and 53_3 - isn't the cost per soldier just the total cost of the war (including the contractor costs) divided by the number of soldiers over time? This is the way toilet seats cost $6000, for example. But I bet the contractor costs cited are just the contractor costs.

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