The economic costs of the wars in Iraq and Afghanistan are estimated to total US$1.6 trillion - roughly double the amount the White House has requested thus far, according to a new report by the US Congress' Joint Economic Committee.
The report released yesterday attempted to put a price tag on the two conflicts, including "hidden" costs such as interest payments on the money borrowed to pay for the wars, lost investment, the expense of long-term health care for injured veterans and the cost of oil market disruptions.
The US$1.6 trillion figure, for the period from 2002 to 2008, translates into a cost of US$20,900 for a family of four, the report said. The Bush administration has requested US$804 billion for the Iraq and Afghanistan wars combined, the report stated.
For the Iraq War only, total economic costs were estimated at US$1.3 trillion for the period from 2002 to 2008. That would cost a family of four US$16,500, the report said.
Future economic costs would be even greater. The report estimated that both wars would cost US$3.5 trillion between 2003 and 2017. Under that scenario, it would cost a family of four US$46,400, the report said.
Oil prices have surged since the start of the war, from about US$37 a barrel to well over US$90 a barrel in recent weeks, the report said. "Consistent disruptions from the war have affected oil prices," although the Iraq War is not responsible for all of the increase in oil prices, the report said.
Still, the report estimated that high oil prices have hit US consumers in the pocket, transferring "approximately US$124 billion from US oil consumers to foreign (oil) producers" from 2003 to 2008, the report said.
(China Daily November 14, 2007)
