Krugman: Fistfuls of Dollars (Cost of Iraq)

[RamboLiberal]

http://www.nytimes.com/2003/08/29/opinion/29KRUG.html

It's all coming true. Before the war, hawks insisted that Iraq was a breeding ground for terrorism. It wasn't then, but it is now. Meanwhile, administration apologists blamed terrorists, not tax cuts, for record budget deficits. In fact, before the war terrorism-related spending was relatively small — less than $40 billion in fiscal 2002. But the costs of a "bring 'em on" foreign policy are now looming large indeed.

The direct military cost of the occupation is $4 billion a month, and there's no end in sight. But that's only part of the bill.

This week Paul Bremer suddenly admitted that Iraq would need "several tens of billions" in aid next year. That remark was probably aimed not at the public but at his masters in Washington; he apparently needed to get their attention.

It's no mystery why. The Coalition Provisional Authority, which has been operating partly on seized Iraqi assets, is about to run out of money. Initial optimism about replenishing the authority's funds with oil revenue has vanished: even if sabotage and looting subside, the dilapidated state of the industry means that for several years much of its earnings will have to be reinvested in repair work.

At a deeper level, the wobbling credibility of the occupation undermines that occupation's financing. American officials still hope to raise money by selling off state-owned enterprises to foreign investors, though they have backed off on proposals to sell power plants and other utilities. But after the bombing of U.N. headquarters, who will buy? Officials have also floated the idea of pledging future oil revenues in return for loans, but it's far from clear whether an occupying power has the right to make such deals, let alone whether they would be honored by whoever is running Iraq a few years from now.

--snip--

Someday, when the grown-ups are back in charge, they'll have quite a mess to clean up.

[Sperk]

1. anyone else feel a draft?

I wrote Kennedy (didn't vote for war):-) and Kerry (did) :mad:last summer and told them that they are NOT getting my son for this illegal and immoral war. Damn them (anyone who voted for war) for letting things get so far!

[NJCher]

2. no son for dim sun

and not one dime from me. If I have to earn bottom dollar to do it, I will. I will not pay a nickel to the feds for this illegal, immoral war.


Cher

[meow2u3]

3. I see in your future.....A TAX REVOLT!

...withholding Federal taxes to protest the money wasted on this illegal war of aggression, along with our hard-earned money going to gangsters like Halliburton and Bechtel.....

[RUMMYisFROSTED]

4. Does that future look like this?

[dw]

5. I think this is one of Krugman's strongest articles yet...

... and would make a great foundation for the keynote speech at the Democratic National Convention.