The Congressional Research Office has issued a report titled
The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations Since 9/11. Here are some of the report's findings.
CRS estimates that Congress has appropriated a total of about $439 billion for military operations, base security, reconstruction, foreign aid, embassy costs and veterans' health for the three operations initiated since the 9/11 attacks.
If Congress approves the additional $71 billion requested in the FY2006 Supplemental (HR 4939) for Iraq and OEF -- $67.9 billion for DOD and $3.4 billion for aid an embassy costs - total war-related funding would rise to about $439 billion.
To place that figure in perspective, the US is spending 3.34% of total current US GDP on the war effort. From a purely economic perspective, is this the best use of national resources? Considering the compound annual growth rate of domestic establishment job growth is .7% for this expansion, maybe private industry could use that $439 billion for something else?
On a monthly basis, DOD spend an average of $6.4 billion for Operation Iraqi Freedom, $1.3 billion for Operation Enduring Freedom and $180 million for enhanced base security in FY2005. Compared to FY2004, these averages are 28% higher for Iraq, 18% higher for OEF and 33% lower for base security. If a FY 2006 supplemental budget is approved, these monthly spending levels would increase.
Bottom line? These expenses are increasing pretty fast, which the report notes later:
In FY2003, the year of the invasion, funding for Iraq reached $51 billion and rose over 50% to almost $77 billion in FY2004...By the next year, funding for Iraq grew to $87 billion, reflecting a $27 billion increase in DOD costs....If the FY2006 supplemental request is approved, total funding for Iraq in FY2006 may reach $102 billion, about one-third about the amount in FY2004, two years earlier.
There are two other very interesting points in the report that deal with the pace and size of the expenditures. According to the const estimates, operation and maintenance/health/other expenses fluctuated between $23.9 billion and $49.3 billion between FY2003 - FY2005. However, these expenses increased to $63.6 billion in FY2006. The report states:
Some of the reasons for the higher operating costs are known for example, higher operating costs reflect: the purchase of more body armor, the jump in oil prices, the coming due of maintenance bills, the inclusion of funds to train and equip the Afghan and Iraqi armies etc... There factors, however, are not enough to explain the 50% increase of over $20 billion in operating costs.
In addition, procurement has increased from $7.7/$9.5 billion in FY2003 to $24.378 billion in FY2006. Again, the report concludes the official reasons for the increase are "not sufficient to explain the level of increase or predict whether these procurement levels are temporary or likely to rise still further."
I realize looking at money is not exactly the most romantic way to oppose the war. But at some point, you have to pay for the damn thing. And it's costing a hell of a lot more than advertised.
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