The $2 Trillion Dollar War

A leading economist says the true cost of Iraq is far higher than President Bush claims -- and America will pay the price for decades to come.

CHARLES M. YOUNG

When America invaded Iraq in 2003, the Bush administration predicted that the war would turn a profit, paying for itself with increased oil revenues. So far, though, Congress has spent more than $350 billion on the conflict, including the $50 billion appropriated for 2007.

But according to one of the world's leading economists, that is just a fraction of what Iraq will actually wind up costing American taxpayers. Joseph Stiglitz, winner of the Nobel Prize for economics, estimates the true cost of the war at$2.267 trillion. That includes the government's past and future spending for the war itself ($725 billion), health care and disability benefits for veterans ($127 billion), and hidden increases in defense spending ($160 billion). It also includes losses the economy will suffer from injured vets ($355 billion) and higher oil prices ($450 billion).