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Friday, March 24, 2006

THE ECONOMIC COSTS OF THE IRAQ WAR:

AN APPRAISAL THREE YEARS AFTER THE BEGINNING OF THE CONFLICT
Linda Bilmes Kennedy School, Harvard University
And Joseph E. Stiglitz University Professor, Columbia University
 
Three years ago, as America was preparing to go to war in Iraq, there were few discussions of the likely costs.  When Larry Lindsey, President Bush?s economic adviser, suggested that they might reach $200 billion, there was a quick response from the White House:  that number was a gross overestimation.[2]   Deputy Defense Secretary Paul Wolfowitz claimed that Iraq could ?really finance its own reconstruction,? apparently both underestimating what was required and the debt burden facing the country.  Lindsey went on to say that ?The successful prosecution of the war would be good for the economy.?[3]
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