Iraq war cost put at US $ 2 trillion

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Wednesday, January 11, 2006

The cost of the war in Iraq for the United States could top US$2 trillion - far above the White House's pre-war projections - when long-term costs such as lifetime health care for thousands of wounded soldiers are included.

Columbia University economist Joseph Stiglitz and Harvard lecturer Linda Bilmes included in a study disability payments for the 16,000 wounded US soldiers. About 20 percent of them have suffered serious brain or spinal injuries.

"Even taking a conservative approach, we have been surprised at how large they are," they said, referring to total war costs. "We can state, with some degree of confidence, that they exceed a trillion dollars."

Before the invasion, then-White House budget director Mitch Daniels predicted Iraq would be "an affordable endeavor" and rejected an estimate by then-White House economic adviser Lawrence Lindsey of total war costs at US$100 billion to US$200 billion as "very, very high."