US: The real cost to America of the Iraq war is likely to be between $1 trillion and $2 trillion, up to 10 times more than thought previously, according to a report by a Nobel prizewinning economist and a Harvard budget expert.
The study, which includes such costs as lifetime disability and healthcare for injured troops as well as the impact on the economy, concludes that the US government is continuing to grossly underestimate the cost of the war.
The paper, written by Prof Joseph Stiglitz and Linda Bilmes, is likely to add to the pressure on the Bush administration. It also follows the revelation this week that the White House has scaled back its ambitions to rebuild Iraq and does not intend to seek new funds for reconstruction.
Prof Stiglitz said that, despite the staggering costs laid out in their paper, the economists had erred on the side of caution. In terms of the total cost of the war, "there may have been alternative ways of spending a fraction of that amount that would have . . . done a better job in winning the hearts and minds of those in the Middle East and promoting democracy". - (Guardian Service)