Paul Krugman: March of Folly

The New York Times
Published: July 17, 2006

Since those who fail to learn from history are doomed to repeat it — and since the cast of characters making pronouncements on the crisis in the Middle East is very much the same as it was three or four years ago — it seems like a good idea to travel down memory lane. Here's what they said and when they said it:

"The greatest thing to come out of [invading Iraq] for the world economy ... would be $20 a barrel for oil." Rupert Murdoch, chairman of News Corporation (which owns Fox News), February 2003

"Oil Touches Record $78 on Mideast Conflict." Headline on www.foxnews.com, July 14, 2006

"The administration's top budget official estimated today that the cost of a war with Iraq could be in the range of $50 billion to $60 billion," saying that "earlier estimates of $100 billion to $200 billion in Iraq war costs by Lawrence B. Lindsey, Mr. Bush's former chief economic adviser, were too high." The New York Times, Dec. 31, 2002

"According to C.B.O.'s estimates, from the time U.S. forces invaded Iraq in March 2003, $290 billion has been allocated for activities in Iraq. ... Additional costs over the 2007-2016 period would total an estimated $202 billion under the first [optimistic] scenario, and $406 billion under the second one." Congressional Budget Office, July 13, 2006