Financial cost of the Iraq War
Encyclopedia
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
.
in the form of the Costs of War project, which said the total for wars in Iraq, Afghanistan, and Pakistan is at least $3.2-4 trillion. The report disavowed previous estimates of the Iraq War's cost as being under $1 trillion, saying the Department of Defense's direct spending on Iraq totaled at least $757.8 billion, but also highlighting the complementary costs at home, such as interest paid on the funds borrowed to finance the wars and a potential nearly $1 trillion in extra spending to care for veterans returning from combat through 2050.
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 Press
interview of Vice President Dick Cheney
, held less than a week before the Iraq War began
, host Tim 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.".
It is unclear why no breakdowns are offered on the basis of each war.
(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.
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. 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."
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.
:; they are approximations that include vehicles lost in non-combat-related accidents as of 2009.
In June 2006, the Army said that the cost of replacing its depleted equipment tripled from that of 2005.
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.
As of June 2010 UK costs exceeded £20bn for the Iraq and Afghanistan wars combined.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, the two largest non Iraqi participants of the multinational force in Iraq
Multinational force in Iraq
The Multi-National Force – Iraq was a military command, led by the United States, which was responsible for Operation Iraqi Freedom. Multi-National Force – Iraq replaced the previous force, Combined Joint Task Force 7, on 15 May 2004, and was later itself reorganized into its successor, United...
.
Direct costs
The costs of the War on Terror are often contested, as academics and critics of the component wars (including the Iraq War) have unearthed many hidden costs not represented in official estimates. The most recent major report on these costs come from Brown UniversityBrown University
Brown University is a private, Ivy League university located in Providence, Rhode Island, United States. Founded in 1764 prior to American independence from the British Empire as the College in the English Colony of Rhode Island and Providence Plantations early in the reign of King George III ,...
in the form of the Costs of War project, which said the total for wars in Iraq, Afghanistan, and Pakistan is at least $3.2-4 trillion. The report disavowed previous estimates of the Iraq War's cost as being under $1 trillion, saying the Department of Defense's direct spending on Iraq totaled at least $757.8 billion, but also highlighting the complementary costs at home, such as interest paid on the funds borrowed to finance the wars and a potential nearly $1 trillion in extra spending to care for veterans returning from combat through 2050.
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 Press
Meet the Press
Meet the Press is a weekly American television news/interview program produced by NBC. It is the longest-running television series in American broadcasting history, despite bearing little resemblance to the original format of the program seen in its television debut on November 6, 1947. It has been...
interview of Vice President Dick Cheney
Dick Cheney
Richard Bruce "Dick" Cheney served as the 46th Vice President of the United States , under George W. Bush....
, held less than a week before the Iraq War began
2003 invasion of Iraq
The 2003 invasion of Iraq , was the start of the conflict known as the Iraq War, or Operation Iraqi Freedom, in which a combined force of troops from the United States, the United Kingdom, Australia and Poland invaded Iraq and toppled the regime of Saddam Hussein in 21 days of major combat operations...
, host Tim Russert
Tim Russert
Timothy John "Tim" Russert was an American television journalist and lawyer who appeared for more than 16 years as the longest-serving moderator of NBC's Meet the Press. He was a senior vice president at NBC News, Washington bureau chief and also hosted the eponymous CNBC/MSNBC weekend interview...
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.".
Appropriations
- 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 billion 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
- FY2007 Emergency Supplemental (proposed) $100 billion
- FY2008 Bush administration has proposed around $190 billion for the Iraq War and Afghanistan
- FY2009 Obama administration has proposed around $130 billion in additional funding for the Iraq War and Afghanistan.
- FY2011 Obama administration proposes around $159.3 billion for the Iraq and Afghanistan wars.
It is unclear why no breakdowns are offered on the basis of each war.
Indirect and delayed costs
According to a Congressional Budget OfficeCongressional Budget Office
The Congressional Budget Office is a federal agency within the legislative branch of the United States government that provides economic data to Congress....
(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.
Stiglitz, former chief economist of the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
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. 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."
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.
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 ProgressCenter for American Progress
The Center for American Progress is a progressive public policy research and advocacy organization. Its website states that the organization is "dedicated to improving the lives of Americans through progressive ideas and action." It has its headquarters in Washington D.C.Its President and Chief...
:; they are approximations that include vehicles lost in non-combat-related accidents as of 2009.
Land equipment
- 80 M1 AbramsM1 AbramsThe M1 Abrams is a third-generation main battle tank produced in the United States. It is named after General Creighton Abrams, former Army Chief of Staff and Commander of US military forces in Vietnam from 1968 to 1972. The M1 is a well armed, heavily armored, and highly mobile tank designed for...
tanks - 55 BradleyM2 BradleyThe Bradley Fighting Vehicle is an American fighting vehicle platform manufactured by BAE Systems Land and Armaments, formerly United Defense.As with other infantry fighting vehicles, the Bradley is designed to transport infantry with armor protection while providing covering fire to suppress enemy...
fighting vehicles - 20 StrykerStrykerThe IAV Stryker is a family of eight-wheeled, 4-wheel-drive , armored fighting vehicles derived from the Canadian LAV III and produced by General Dynamics Land Systems, in use by the United States Army. The vehicle is named for two American servicemen who posthumously received the Medal of Honor:...
wheeled combat vehicles - 20 M113M113 Armored Personnel CarrierThe M113 is a fully tracked armored personnel carrier that has formed the backbone of the United States Army's mechanized infantry units from the time of its first fielding in Vietnam in April 1962. The M113 was the most widely used armored vehicle of the U.S...
armored personnel carriers - 250 HumveesHigh Mobility Multipurpose Wheeled VehicleThe High Mobility Multipurpose Wheeled Vehicle , better known as the Humvee, is a military 4WD motor vehicle created by AM General. It has largely supplanted the roles formerly served by smaller Jeeps such as the M151 MUTT, the M561 "Gama Goat", their M718A1 and M792 ambulance versions, the CUCV,...
- 500+ Mine clearing vehicles, heavy/medium trucks, and trailers
- 10 Amphibious Assault VehicleAmphibious Assault VehicleThe Assault Amphibious Vehicle —official designation AAV-7A1 is a fully tracked amphibious landing vehicle manufactured by U.S. Combat Systems .The AAV-7A1 is the current amphibious troop transport of the United States Marine Corps...
s
Air equipment
- 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.
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.
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.As of June 2010 UK costs exceeded £20bn for the Iraq and Afghanistan wars combined.