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$2 trillion, with a “t”

According to Joseph Stiglitz, the Iraq War will cost the U.S. $2 trillion, 10 times more than the original estimate of $200 billion given before the war started. Stiglitz and Linda Bilmes, an economist from Harvard, whose joint paper “The Economic Costs of the Iraq War” was released last week, arrive at the larger figure by including “substantial future costs” that have been left out of previous calculations. One cost often overlooked in the calculations (via The Guardian):

Due to improvements in body armour, there has been an unusually high number of soldiers who have survived major wounds such as brain damage, spinal injuries and amputations. The economists predict the cost of lifetime care for the thousands of troops who have suffered brain injuries alone could run to $35bn.

Joseph Stiglitz’s newest book is Fair Trade for All: How Trade Can Promote Development.

(via Marginal Revolution)

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