Friday, March 6, 2009

War Costing $720 Million Each Day, Group Says

CHICAGO, Sept. 21 -- The money spent on one day of the Iraq war could buy homes for almost 6,500 families or health care for 423,529 children, or could outfit 1.27 million homes with renewable electricity, according to the American Friends Service Committee, which displayed those statistics on large banners in cities nationwide Thursday and Friday.

The war is costing $720 million a day or $500,000 a minute, according to the group's analysis of the work of Nobel Prize-winning economist Joseph E. Stiglitz and Harvard public finance lecturer Linda J. Bilmes.







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The estimates made by the group, which opposes the conflict, include not only the immediate costs of war but also ongoing factors such as long-term health care for veterans, interest on debt and replacement of military hardware.

"The wounded are coming home, and many of them have severe brain and spinal injuries, which will require round-the-clock care for the rest of their lives," said Michael McConnell, Great Lakes regional director of the AFSC, a peace group affiliated with the Quaker church.

The $720 million figure breaks down into $280 million a day from Iraq war supplementary funding bills passed by Congress, plus $440 million daily in incurred, but unpaid, long-term costs.

But some supporters of the Bush administration's policy in Iraq say that even if the war is costly, that fact is essentially immaterial.

"Either you think the war in Iraq supports America's national security, or not," said Frederick W. Kagan, a resident scholar at the American Enterprise Institute. "If you think national security won't be harmed by withdrawing from Iraq, of course you would want to see that money spent elsewhere. I myself think that belief, on a certain level, is absurd, so the question of focusing on how much money we are spending there is irrelevant."


The war's unpaid long-term costs do not include "macro-economic consequences" described by Bilmes and Stiglitz, including higher oil prices, loss of trade because of anti-American sentiments and lost productivity of killed or injured U.S. soldiers.

In 2006, Bilmes, who was an assistant secretary of commerce under President Bill Clinton, and Stiglitz, a former chief economist at the World Bank, placed the total cost of the Iraq war at more than $2.2 trillion, not counting interest. The American Friends group used cost breakdowns and interest projections from the Congressional Budget Office to calculate the daily cost of war emblazoned on the banners flown in Boston, San Francisco, Philadelphia, Chicago and other cities.

The banners show what this could buy in terms of health care, Head Start programs, new elementary schools, free school lunches, renewable energy and hiring new teachers. Protest organizers say they hope to turn more people against the war by laying out its true financial impact.

"I think people are becoming more aware of these guns or butter questions," said Gary Gillespie, director of the group's Baltimore Urban Peace Program, which displayed the banners in the Baltimore suburb of Bel Air on Friday. "But when you talk about $720 million a day, even people who work on this issue are shocked by the number and shocked by what could have been done with that money. War has no return -- you're not producing a product."

Private security firm controversy

On September 17, 2007, the Iraqi government announced that it was revoking the license of the US security firm Blackwater USA over the firm's involvement in the killing of eight civilians, including a woman and an infant, in a firefight that followed a car bomb explosion near a State Department motorcade. Additional investigations of alleged arms smuggling involving the firm was also under way. Blackwater is currently one of the most high-profile firms operating in Iraq, with around 1,000 employees as well as a fleet of helicopters in the country. Whether the group may be legally prosecuted is still a matter of debate.An Iraqi investigation into the events stated that as the convoy drew close to Nisour Square, a distant Kia sedan with a woman and her grown son in it was driving slowly on the wrong side of the road, and ignored a police officer's whistle to clear a path for the convoy. The report said the security team fired warning shots and then lethal fire at the Kia. After this, the report said that stun grenades were fired off by contractors to clear the scene. The report continues by saying Iraqi police and Army soldiers, mistaking the stun grenades for frag grenades, opened fire at the Blackwater team, to which the Blackwater team again responded. A Reuters report showed some of the vehicles which were left at the scene. According to Iraqi investigators, a Blackwater helicopter present during the attack fired several times from the air. Blackwater has denied these charges.

Iraqi Brigadier-General Abdul-Karim Khalaf has stated the US firm "opened fire randomly at citizens." Among those killed was one Iraqi policeman; however, no State Department officials were wounded or killed.

Blackwater has stated that a car bomb detonated close to the meeting point and that their security team then evacuated the State Department officials. Blackwater says the convoy passed through Nisour Square, between the Sunni controlled al-Mansour and al-Yarmukh neighborhoods, and was attacked. According to Blackwater VP Marty Strong, it was hit with "a large explosive device" and "repeated small arms fire" which disabled a vehicle. Several sources have stated that the explosion was caused by a mortar round, though this is not reflected in the Department of State incident report. Blackwater has denied Iraqi allegations that one of their helicopters fired from the air during the incident.

A State Department report states that eight to ten attackers opened fire "from multiple nearby locations, with some aggressors dressed in civilian apparel and others in Iraqi police uniforms." The report says that as the convoy tried to leave, its route was blocked by insurgents armed with machine guns at 12:08pm. According to the report, "The team returned fire to several identified targets" before leaving the area and a second convoy en route to help was "blocked/surrounded by several Iraqi police and Iraqi national guard vehicles and armed personnel." A US Army convoy, possibly the same one delayed by Iraqi forces, arrived approximately a half hour later, backed by air cover, to escort the convoy back to the Green Zone.

On September 27, the New York Times reported that during the incident at Nisoor Square, one member of the Blackwater security team continued to fire on civilians, despite urgent cease-fire calls from colleagues. The incident was resolved after another Blackwater contractor pointed his own weapon at the man still firing and ordered him to stop.

US Military reports appear to corroborate the Iraqi government's contention that Blackwater was at fault in the incident.