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Monday, May 13, 2013

The Financial Legacy of Iraq and Afghanistan



go to web site, click on PDF for full report… a must read
 
The Financial Legacy of Iraq and Afghanistan: How Wartime Spending Decisions Will Constrain Future National Security Budgets
Bilmes, Linda J. "The Financial Legacy of Iraq and Afghanistan: How Wartime Spending Decisions Will Constrain Future National Security Budgets." HKS Faculty Research Working Paper Series RWP13-006, March 2013.
Abstract
The Iraq and Afghanistan conflicts, taken together, will be the most expensive wars in US history – totaling somewhere between $4 to $6 trillion. This includes long-term medical care and disability compensation for service members, veterans and families, military replenishment and social and economic costs. The largest portion of that bill is yet to be paid.
 
Since 2001, the US has expanded the quality, quantity, availability and eligibility of benefits for military personnel and veterans. This has led to unprecedented growth in the Department of Veterans Affairs and the Department of Defense budgets. These benefits will increase further over the next 40 years. Additional funds are committed to replacing large quantities of basic equipment used in the wars and to support ongoing diplomatic presence and military assistance in the Iraq and Afghanistan region. The large sums borrowed to finance operations in Iraq and Afghanistan will also impose substantial long-term debt servicing costs. As a consequence of these wartime spending choices, the United States will face constraints in funding investments in personnel and diplomacy, research and development and new military initiatives. The legacy of decisions taken during the Iraq and Afghanistan wars will dominate future federal budgets for decades to come.
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***************** excerpt from Page 4
Finally, the decision to finance the war operations entirely through borrowing has already added some $2 trillion to the national debt, contributing about 20% of the total national debt added between 2001 and 20129. This level of debt is thus one of the reasons the country faces calls for austerity and budget cuts, which has already had an impact on the military budget through the across-the-board cuts (the “sequester”) that were allowed to take effect in 2013. The US has already paid $260 billion in interest on the war debt. This does not include the interest payable in the future, which will reach into the trillions10 .
This paper will focus on the costs of commitments we have made in four important areas during the Iraq and Afghanistan wars:
I. Veterans health care and disability compensation
II. Pentagon personnel and health care policies and benefits
III. Other Department of Defense costs and commitments
IV. Financing of the wars
The data presented here updates previous



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"Keep on, Keepin' on"  "Colonel Dan"
Dan Cedusky, Champaign IL, Col, USA, Ret,
Life member: Am Legion, DAV, AMVETS, MOAA, NGAUS, IL SAL, NGAIL,
NAUS, IL State Director USDR

See my web site at:
http://www.angelfire.com/il2/VeteranIssues/

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