Monday, April 11, 2011

Budgeting War

Another reminder that the costs of our wars--far from breaking our budget--are becoming less of a burden on our economy over time:

U.S. military operations in Iraq, Afghanistan and elsewhere have, since September 11, 2001, cost about $1.15 trillion. That seems like a lot, and it is. But it's not a lot like it used to be. For example, World War II cost, at the time (in current dollars) $4.1 trillion dollars. That amounted to over 33 percent of U.S. GDP. The current war on terror is costing about one percent of GDP. So while war may appear to be getting more expensive, relative to the amount of money available, it's actually getting cheaper.

Can we say that for the rest of the budget?

Our defense budget overall is also declining as a burden. I'll also remind you that the responsibility to defend our country is priority one of our federal government and everything else is a bonus benefit.