On the McClatchy news site, economist Linda Bilmes, co-author of “The Three Trillion Dollar War: The True Cost of the Iraq Conflict,” explains why the Iraq war isn’t giving the economy a “war bump”:
Unlike World War II, the Iraq war “has had a net negative effect on the economy. This is for several reasons. First, the money that we spend every month goes largely to operational costs (fuel, laundry, cooking, transportation, repairs), much of which is performed by subcontractors from the Philippines, Nepal and other countries. So in effect, the dollars spent do not have any positive return for the U.S. economy. Second, because we have borrowed all the money to fight the war, largely from abroad, we have added to the deficit and to the national debt, which means we have to pay more interest and adds a burden onto the economy. Third, the war has contributed to the increase in oil prices, which of course take money out of the hands of consumers, and lower business margins, and transfer it to the oil producers.”
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Then there’s the ex-bushters:
Ex-Bushie Still Pounding the Pavement
Loyalty took no one so far in the Bush administration as Alberto Gonzales. But eight months after he resigned amid allegations of possible perjury and enabling arguably unconstitutional activity, the former Bush administration attorney general still cannot find a job, the New York Times reports:
Alberto R. Gonzales, like many others recently unemployed, has discovered how difficult it can be to find a new job. Mr. Gonzales, the former attorney general, who was forced to resign last year, has been unable to interest law firms in adding his name to their roster, Washington lawyers and his associates said in recent interviews.
He has, through friends, put out inquiries, they said, and has not found any takers. What makes Mr. Gonzales’s case extraordinary is that former attorneys general, the government’s chief lawyer, are typically highly sought. …
Despite those credentials, he left office last August with a frayed reputation over his role in the dismissal of several federal prosecutors and the truthfulness of his testimony about a secret eavesdropping program. He has had no full-time job since his resignation, and his principal income has come from giving a handful of talks at colleges and before private business groups. …
The greatest impediment to Mr. Gonzales’s being offered the kind of high-salary job being snagged these days by lesser Justice Department officials, many lawyers agree, is his performance during his last few months in office. In that period, he was openly criticized by lawmakers for being untruthful in his sworn testimony. His conduct is being investigated by the Office of the Inspector General of the Justice Department, which could recommend actions from exonerating him to recommending criminal charges. Friends set up a fund to help pay his legal bills.
The price of loyalty indeed.
http://www.motherjones.com/mojoblog/archives/2008/04/7950_exbushie_still.html
Sometimes people get what they deserve.
Maybe the war isn’t helping the economy but it sure is helping the profits of the war-related businesses abd Big Oil.
Except for WW II, isn’t the “war bump” idea kind of a myth. After WW II we were coming out of a world wide depression.
But maybe the Bush plan is to put us in a world-wide depression, so that the next war provides a war bump.
First, the money that we spend every month goes largely to operational costs (fuel, laundry, cooking, transportation, repairs), much of which is performed by subcontractors from the Philippines, Nepal and other countries. So in effect, the dollars spent do not have any positive return for the U.S. economy.
Just heard Kevin Phillips on NPR. He says the prime money-maker for America now is. . .money. Financial services, ATM fees, and the like. Speaking generally, we’re not creating anything anymore. “American goods” is fast becoming an anachronism.
And it’s not just manufacturing–honestly, if they could outsource the outsourcing —oh wait. . .they’ve already done that!
It’s all about making money for some –at the expense of the rest of us.
I think you’ll find that the U.S. is still the world’s largest manufacturer of products. Take a look at what is going down the interstate on flatbed trucks to get an idea. It’s true that many segments’ manufacturing is sick or dead. I wonder if during this period of perceived manufacturing decline if the real value and or volume of our products has actually increased?
Take a look at what is going down the interstate on flatbed trucks to get an idea.
What I see are trains coming thru with cars marked “Hanjin” and “China Shipping.”
Either instance is, of course, anecdotal. But try this, beber–go to, say, Target, and buy some fairly common items: clothing, appliances, whatever, at random.
Try not to buy something made in China.
P.S. My point is not that trade is bad, but a greed-based economy is doomed to collaspe.
“It’s all about making money for some –at the expense of the rest of us”
Socialize the costs. Privatize the profits.
Some folks are too dumb to see it
“It’s all about making money for some –at the expense of the rest of us”
Socialize the costs.
Privatize the profits.
And some folks are too dumb to see it
…oh, and just because something is rolling down our interestates, doesnt mean it was manufactured in this country.
duh
sorry for the double post. I’m not sure I like this new blog technology.
McCain’s new economic plan sounds just like the old economic plan. Cut corporate tax rates to 25% to get rid of that nasty deficit!
http://news.yahoo.com/s/nm/20080415/pl_nm/usa_politics_mccain_dc_3
The war is helping the economy! The economy of the Islamic nations.
The monstrous profits of the oil companies will trickle down! Right Paulie?
Manufacturing is the heart of any economy, it was the sudden influx of the defense manufacturing that brought the boom in WWII. A consumer based economy is a fruitless economy, when it is based on “takers” and no providers. Look at Wal-Mart as a classic example, their actually went to China, set up the manufacturing of their goods there. Force their American suppliers to move their manufacturing off shore in order to be able to provide for the price that Wal-Mart demanded them to charge.
Now of everyone interested in the U.S. and China’s relationship, it is Wal-Mart. If the relationship goes sour. They have no one to turn to that could be a back-up in time to provide the goods to keep the company from going under. The Columbia trade deal seem the best one so far, the rest seem more to enable this country to go further into a Consumer based economy. This topic is a good example of why without the use of the American manufacturing and American companies to provide service in a war. That it does no good to have the war.
Oil pushing 114 pb. Life is good for the oil men. When is the recession supposed to start affecting the demand/supply equation?
Looks like all we’re going to get for our efforts is stagflation. The PPI just went up.
It goes without saying wars are bad for the economy. The only reason America prospered after ww2 was because much of the manufacturing in Europe was destroyed and they had to buy their goods from somewhere. America now has a military that is maintained through a credit card. We borrow money to build weapons which we turn around and destroy so we get no return on our investment.
Of course the Bush regime said the war wasn’t going to cost anything over $30 billion and that would be paid for by all the oil we got from Iraq. Republican shills denounced anyone who said anything different as supporters of terrorism who wanted to keep Saddam in power, and the corporate media went along with hardly any skepticism.
Now we reap the seeds of Republican economic and foreign policy with a national debt that would shock even Reagan. But the contracts to overseas companies continues and continues and is promised another four years with McCain.
Here’s what’s wrong with the cons. supply/demand equation.
“OPEC has ignored pressure from oil-consuming countries to boost production and its biggest member Saudi Arabia, the world’s leading oil exporter, has curbed supplies in response to weaker demand.
A Saudi oil source said on Friday Saudi Arabia had trimmed its output by about 200,000 bpd to 9 million bpd.”
When demand decreases they’ll just regulate the supply.
I wonder how many prowar hawks would continue to support the war if the government levied a tax to pay for it?
Why isn’t war helping economy?
Could it be cause we buy all our $hit from China?
Mainly its due to the war being such a small little piss-ant dust up it doesnt register much in our huge economy. This war is smaller than some individual battles in WWII.
Just a fart in the wind compared to the size of the US economy. Yes, even during this little hiccup we are having with the subprime scam.
If we would smarten up we would allow some of these big mortgage banks like Bear Stearns to go tits-up. Let them understand we are not going to float them anymore. A few hundred thousand unemployed bankers in New York City is of no concern to the rest of the country. Might be good for their attitude anyway.
If we would smarten up we would allow some of these big mortgage banks like Bear Stearns to go tits-up. Let them understand we are not going to float them anymore. A few hundred thousand unemployed bankers in New York City is of no concern to the rest of the country. Might be good for their attitude anyway.
Hell YES. If you play wit fire, you might get burned. Let them.
sounds harsh, but goes for the home “owners” too. Don’t buy what you can’t afford.
I believe this war has cost more than WW2, and still counting.
If they had to pay for it, it would take out about half of the remaining 20% bush faithful.
That may have been ww1, not sure. But, I’d read it’d cost more than one of them.
sounds harsh, but goes for the home “owners” too. Don’t buy what you can’t afford.
I tend to agree sol BUT …
(a) How about the effect on neighbors with all these boaredd-up houses? I think we might be better off trying to salvage them.
(b) I think in some cases there is evidence of fraud and misrepresenattion on the part of mortgage brokers. In those cases I think we should help the homeowners.
War is damn good business, (Tankers) for the foreigners.
Good posts, SteveD, KFarmgrrl and MaggotP.
The money which the war might have generated for increased US production is just going to rich corps which outsource it all to foreign workers.
This war can’t even generate jobs.
Total failure all the way around . . .
BTW, MrBill, idiotic.
Pure idiocy. 2 billion a week is not a “dust up.” If it is, then, YOU pay it.
When you outsource a war, and there are no spoils, what can you expect except to be holding the bag.
The very people who financed, planned, plotted, and carried out the Twin Towers attack on 9/11/2001 (the Saudis) and Halliburton are the ones profiting from the war in Iraq.
WOT best thing ever happened for Saudi Arabia and Iran!
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[...] Sibby Online wrote an interesting post today on Why isnâ??t war helping economy?Here’s a quick excerptLinda Bilmes, co-author of “The Three Trillion Dollar War: The True Cost of the Iraq Conflict,” explains why the Iraq war isn’t giving… [...]
[...] Down the Rabbit Hole wrote an interesting post today on Why isnâ??t war helping economy?Here’s a quick excerptLinda Bilmes, co-author of “The Three Trillion Dollar War: The True Cost of the Iraq Conflict,” explains why the Iraq war isn’t giving… [...]