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The failure to calculate the costs of war
From: David Farber <dave () farber net>
Date: Tue, 10 Jan 2006 16:40:13 -0500
Begin forwarded message: From: Claudio Gutierrez <claudio.gutierrez.m () gmail com> Date: January 10, 2006 4:34:11 PM EST To: dave () farber net Subject: The failure to calculate the costs of war Maybe worth for IP? Martin Wolf is a respectable economist and chief economics commentator at the Financial Times Martin Wolf: The failure to calculate the costs of war http://news.ft.com/cms/s/48ad9c0a-820f-11da-aea0-0000779e2340.html Before the Iraq war began, Lawrence Lindsey, then president George W. Bush's economic adviser, suggested that the costs might reach $200bn. The White House promptly fired him. Mr Lindsey was indeed wrong. But his error lay in grossly underestimating the costs. The administration's estimates of a cost of some $50-$60bn were a fantasy, as were Saddam Hussein's weapons of mass destruction, and much else. <snip> So far the government has spent $251bn in hard cash. But the costs continue. If the US begins to withdraw troops this year, but maintains a diminishing presence for the next five years, the additional cost will be at least $200bn, under what Profs Bilmes and Stiglitz call their "conservative" option. Under their "moderate" one, the cost reaches $271bn, because troops remain until 2015. <snip> With these costs taken into account, the total macroeconomic costs may add up to $750bn and total costs to $1,850bn. <snip> It is possible to argue that the benefits for Iraq, the Middle East and the world will outweigh all these costs. But that depends on the emergence, in Iraq, of a stable and peaceful democratic order. That has not yet been achieved. Even those who supported the war must draw two lessons. First, the exercise of military power is far more expensive than many fondly hoped. Second, such policy decisions require a halfway decent analysis of the costs and possible consequences. The administration's failure to do so was a blunder that will harm the US and the world for years to come. ------------------------------------- You are subscribed as lists-ip () insecure org To manage your subscription, go to http://v2.listbox.com/member/?listname=ip Archives at: http://www.interesting-people.org/archives/interesting-people/
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- The failure to calculate the costs of war David Farber (Jan 10)