The Cost of the Iraq War

You hear all the time that the war in Iraq is costing us upwards of $10 to $12 billion a month. When people against the war talk about the cost of the war in monetary terms, they make it seem like this money disappears into thin air.

I want the war to end, and I want a stable Iraq. I want the government to stop spending so much, but I want us to win the war the right way. To many people the cost of this war is troubling. It is now the second most expensive war, though the cost of World War 2 easily trumps the cost of the Iraq war. But, have you considered where this money goes?

A large percentage of the cost of the war is the pay and care of our troops. This money is spent by our troops when they come home and by their families at home. This money is used to pay mortgages, buy groceries, eat at restaurants, buy retail products, etc. In other words, it is pumped back into our economy.

Another large percentage of the cost of the war is for government contracts. We pay American companies (this is why the Boeing v. EADS Tanker deal is so controversial) to build tanks, Humvees, and military weaponry. We pay companies to supply uniforms and protective gear. In other words it is pumped back into our economy.

Thus, a lot of the money we spend does not just disappear into the economy but being pumped back into our economy by providing jobs and American goods. So, it is a bit misleading when people say we are wasting $10 billion a month in Iraq.

I am a bit confused as to why we have not learned from WW2 and the Allied Occupations of Germany and Japan. We spent $5 trillion in WW2 (inflation adjusted $) and we spent another $45 billion or so in economic reconstruction. Our full out occupation of both countries was 6 years for Germany and 7 years for Japan. It took continued assistance and time before Germany and Japan were fully ready. It has been 5 years in Iraq and we are far from finished. Why?

For all the time and money we have spent in Iraq we have lacked direction, leadership, and a good plan. We need a Marshall Plan type plan. The situations of the wars and the situations of the countries are different between WW2 and Iraq, however, it does not mean something similar can't work.

Let's do a little studying of history and try to come up with a plan that will have such success as we had in WW2; success that lead to the creation of the #2 and #3 economies in the world. In the long run, the Japanese economy and German economy have contributed trillions of dollars to the world. If that can happen in Iraq then all the billions we spend will be worth it.