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Financial cost of the Iraq War

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The following is a partial accounting of financial costs of the 2003 Iraq War by the United States and the United Kingdom, the two largest non Iraqi participants of the multinational force in Iraq.

Contents  [hide] 1 U.S. war costs 1.1 Direct costs 1.1.1 Appropriations 1.2 Indirect and delayed costs 1.3 Long-term health care costs 1.4 Military equipment lost 1.4.1 Land equipment 1.4.2 Air equipment 2 U.K. war costs 3 References

[edit]U.S. war costs

[edit]Direct costs

A Marine Corps M1 Abrams tank patrols a Baghdad street after its fall in 2003 during Operation Iraqi Freedom.

As of February 2010, around $704 billion has been spent based on estimates of current expenditure rates,^[1] which range from theCongressional Research Service(CRS) estimate of $2 billion per week to $12 billion a month, an estimate by economist Joseph Stiglitz.^[2]

Those figures are significantly more than typical estimates published just prior to the start of the Iraq War, many of which were based on a shorter term of involvement. For example, in a March 16, 2003 Meet the Pressinterview of Vice President Dick Cheney, held less than a week before the Iraq War began, hostTim Russert reported that "every analysis said this war itself would cost about $80 billion, recovery of Baghdad, perhaps of Iraq, about $10 billion per year. We should expect as American citizens that this would cost at least $100 billion for a two-year involvement.".^[3]

[edit]Appropriations

See also: Iraq Relief and Reconstruction Fund

• FY2003 Supplemental: Operation Iraqi Freedom: Passed April 2003; Total $78.5 billion, $54.4 billion Iraq War
• FY2004 Supplemental: Iraq and Afghanistan Ongoing Operations/Reconstruction: Passed November 2003; Total $87.5 billion, $70.6 billion Iraq War
• FY2004 DoD Budget Amendment: $25 Emergency Reserve Fund (Iraq Freedom Fund): Passed July 2004, Total $25 billion, $21.5 billion (estimated) Iraq War
• FY2005 Emergency Supplemental: Operations in the War on Terror; Activities in Afghanistan; Tsunami Relief: Passed April 2005, Total $82 billion, $58 billion (estimated) Iraq War
• FY2006 Department of Defense appropriations: Total $50 billion, $40 billion (estimated) Iraq War.
• FY2006 Emergency Supplemental: Operations Global War on Terror; Activities in Iraq & Afghanistan: Passed February 2006, Total $72.4 billion, $60 billion (estimated) Iraq War
• FY2007 Department of Defense appropriations: $70 billion(estimated) for Iraq War-related costs^[4][5]
• FY2007 Emergency Supplemental (proposed) $100 billion
• FY2008 Bush administration has proposed around $190 billion for the Iraq War and Afghanistan^[6]
• FY2009 Obama administration has proposed around $130 billion in additional funding for the Iraq War and Afghanistan.^[7]
• FY2011 Obama administration proposes around $159.3 billion for the Iraq and Afghanistan wars.^[8]

[edit]Indirect and delayed costs

According to a Congressional Budget Office (CBO) report published in October 2007, the U.S. wars in Iraq and Afghanistan could cost taxpayers a total of $2.4 trillion dollars by 2017 when counting the huge interest costs because combat is being financed with borrowed money. The CBO estimated that of the $2.4 trillion long-term price tag for the war, about $1.9 trillion of that would be spent on Iraq, or $6,300 per U.S. citizen.^[9][10]

Stiglitz, former chief economist of the World Bank and winner of the Nobel Prize in Economics, has stated the total costs of the Iraq War on the US economy will be three trillion dollars in a moderate scenario, and possibly more in the most recent published study, published in March 2008.^[11] Stiglitz has stated: "The figure we arrive at is more than $3 trillion. Our calculations are based on conservative assumptions...Needless to say, this number represents the cost only to the United States. It does not reflect the enormous cost to the rest of the world, or to Iraq."^[11]

The extended combat and equipment loss have placed a severe financial strain on the U.S Army, causing the elimination of non-essential expenses such as travel and civilian hiring.^[12][13]

The UH-60 Black Hawk that crashed on September 21, 2004.

[edit]Long-term health care costs

A recent study indicated that the long term health care costs for wounded Iraq war veterans could range from $350 billion to $700 billion.^[14]

[edit]Military equipment lost

The U.S. has lost a number of pieces of military equipment during the war. The following statistics are from the Center for American Progress:;^[15] they are approximations that include vehicles lost in non-combat-related accidents as of 2009.

[edit]Land equipment 80 M1 Abrams tanks 55 Bradley fighting vehicles 20 Stryker wheeled combat vehicles 20 M113 armored personnel carriers 250 Humvees 500+ Mine clearing vehicles, heavy/medium trucks, and trailers 10 Amphibious Assault Vehicles[16][17]

[edit]Air equipment Main article: List of aviation accidents and incidents during the Iraq War 109 Helicopters 18 Fixed-Wing Aircraft

In June 2006, the Army said that the cost of replacing its depleted equipment tripled from that of 2005.^[18] As of December 2006, according to government data reported by the Washington Post, the military stated that nearly 40% of the army’s total equipment has been to Iraq, with an estimated yearly refurbishment cost of $US 17 billion. The military states that the yearly refurbishment cost has increased by a factor of ten compared to that of the pre-war state. As of December 2006 approximately 500 M1 tanks, 700 Bradley Fighting Vehicles and 1000 Humvees are awaiting repair in US military depots.^[19]

[edit]U.K. war costs

As of March 2006, approximately £4.5 billion had been spent by the United Kingdom in Iraq. All of this money has come from a government fund called the "Special Reserve" which has a current allocation of £7.4 billion.^[20][21]

[edit]References

1. ^ "National Priorities Project - Cost of War"
2. ^ Bilmes, Linda J.; Stiglitz, Joseph E. (March 9, 2008). "The Iraq War Will Cost Us $3 billion, and Much More". Washington Post. Retrieved 2010-08-24.
3. ^ Transcript of a March 16, 2003 interview with Vice-President Dick Cheney by NBC'sMeet the Press, from the website for the International Relations Program at Mount Holyoke College
4. ^ National Priorities Project | Bringing the Federal Budget Home from the Cost of War website
5. ^ "Congressional Reports: Cost of Iraq, Afghanistan since 9/11". zFacts.org. 2006-04-24. Retrieved 2006-08-15.
6. ^ Increase In War Funding Sought fromThe Washington Post
7. ^ "UPDATE 2-Obama seeks $83.4 billion more in 2009 war funds". Reuters. 2009-04-10.
8. ^http://www.defense.gov/speeches/speech.aspx?speechid=1416
9. ^ Richard Sammon (July 2007). "Iraq War: The Cost in Dollars". Retrieved 2007-07-23.
10. ^ "U.S. CBO estimates $2.4 trillion long-term war costs". Reuters. October 2007. Retrieved 2007-10-24.
11. ^ ^a b The three trillion dollar war fromThe Times of London
12. ^ "Strapped for money, Army extends cutbacks on spending". USA Today. 2006-07-20. Retrieved 2006-08-15.
13. ^ Michael Hirsh (2006-07-21). "End of Days?". Newsweek. Archived from the original on 2006-08-10. Retrieved 2006-08-15.
14. ^ Hidden Costs of War: Long-Term Price of Providing Veterans Medical Care Could Reach $660 Billion from the Democracy Now!
15. ^ Loren B. Thompson; Lawrence J. Korb, Caroline P. Wadhams. "Army Equipment After Iraq" (PDF). Center for American Progress. Retrieved 2009-08-15.
16. ^ Maj Karl C. Rohr (2006-03-21). "The Fog of War". Marine Corps Gazette. Retrieved 2006-08-15.
17. ^ Roxana Tiron (January 2006). "Marine Vehicle Upgrades Reflect Combat Demands". National Defense Magazine. Archived from the original on 2006-10-08. Retrieved 2006-08-15.
18. ^ "Army’s Iraq, Afghanistan equipment costs triple". MSNBC. 2006-06-27. Retrieved 2006-08-15.
19. ^ "U.S. Army Battling To Save Equipment". Tyson, Ann Scott.Washington Post December 5, 2006.
20. ^ "The Rising Costs of the Iraq War (March 2006)". IraqAnalysis.org. 2006-03-22. Retrieved 2006-08-15.
21. ^ "U.K. Spending on War in Iraq, Afghanistan Rises to $16 Bln (December 2006)". Bloomberg. 2006-12-06. Retrieved 2007-01-22.

Categories: Iraq War | Occupation of Iraq | Government finances | Military economics