Bush's War On Terror Has Worked Out Pretty Well.
Americans made real sacrifices in the Second World War. Millions served under arms. Most families had soldiers in harm's way, and many lost them. Even those in civilian work at home bore direct burdens. They accepted rationing and lowered standards of living to help the war. They accepted high taxes. While the Federal Government ran up huge deficits, these were largely financed here by private sector savings here at home. Now consider the legacy of the past 10 years and our "war on terror."
Far from paying the tab, we have scrupulously avoided any costs at all. Okay, so you stand in line longer at airports. Big deal.
How much has the war on Al Qaida actually cost?
Nobody knows for sure. For one idea, I looked first at the budget data from the federal Office of Management and Budget. From 2002 through this year, Uncle Sam has spent a total of $6.5 trillion on the Pentagon, the Department of Homeland Security, and the Office of Veterans' Affairs.
If that spending had merely increased in line with inflation, we would have spent $4 trillion instead. The gap — the increase in defense and related expenditure over inflation since 9/11 — comes to $2.5 trillion. So maybe that's one estimate.
Linda Bilmes, a professor at Harvard's Kennedy School and one of the leading experts on the topic, says the direct costs of "war on terror" have so far exceeded $2 trillion. She believes that when the full tab is compiled, including the costs of a lifetime of medical care for the wounded, the costs will come to $5 trillion to $6 trillion.
How much of this burden have the rest of us actually paid?
None of it. On the eve of 9/11, U.S. gross federal debt stood at $5.5 trillion. Today it's around $14 trillion. In other words, over the past 10 years we've put more than $8 trillion on the national credit card. That's maybe four times the total direct costs of the "war on terror" to date, and more than the total likely bill.
And of course, unlike in World War Two, our government has been forced to borrow most of this money from abroad, because during the same period American businesses and households also went on a debt orgy.
From the summer of 2001 until now, U.S. homeowners doubled their mortgage debts from $5.2 trillion to $10.1 trillion. Consumer credit rose 50% as shoppers went out on a spree. Corporate debt also rose 50%, as companies mortgaged their future and handed the money to stockholders and executives. Our total national debts, according to the Federal Reserve, have doubled to about $55 trillion.
In other words, not only have we not made material sacrifices for this war — we've taken it as an excuse to party.
Perhaps this is why no "relief rally" turned up on Wall Street on Monday, to the consternation of the commentators. Relief from what? Compare this infantile behavior to the discipline, maturity, dedication and sacrifice of those under arms who are actually fighting the war on Al Quaida.
The Pentagon says that 5,804 American servicemen and women have been killed in action in the wars in Afghanistan and Iraq. Another 43,184 have been wounded. Many of those have been wounded grievously, coming home without eyes, or limbs, or with head traumas, or with other terrible injuries, to pick up the pieces they can of their shattered lives.
For all these heroic Americans, 9/11 was just the beginning of the horrors. They have made incredible sacrifices and continue to do so. Sunday's news is for them, and they deserve our gratitude.
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