Iran war could cost US taxpayers $1 trillion: Harvard prof
What's the story
The ongoing conflict between the United States and Iran could end up costing American taxpayers $1 trillion, a Harvard academic has warned. Professor Linda Bilmes, a public policy expert at Harvard Kennedy School, said that the costs of the war are likely to far exceed official estimates. Her research highlights several reasons why this military operation could have catastrophic consequences for the US national debt.
Cost analysis
Bilmes challenges Pentagon's cost estimates
The first six days of the US-Israel operation against Iran, which started on February 28, cost $11.3 billion, according to Pentagon data. However, Bilmes estimates that these initial costs are much higher when considering factors like munitions and damage to military assets. She argues that the Pentagon reports figures based on historical inventory values rather than current replacement costs, resulting in an underestimation of expenses.
Future expenses
Long-term costs and military spending surge
Bilmes also warned that the long-term costs of the war could be even higher due to reconstruction expenses and potential lifetime disability benefits for troops exposed to environmental hazards. The White House has asked Congress to increase the US defense budget to $1.5 trillion, which would be the largest military spending expansion since World War II. This figure does not include an additional $200 billion requested by the Pentagon for operations in Iran.
Debt impact
Comparison with Iraq war costs
Bilmes compared the potential costs of the Iran war with those of previous conflicts, noting that public debt during the Iraq war was under $4 trillion. Today, it stands at over $31 trillion. She said, "We are borrowing to finance this war at higher rates, on top of a much larger debt base." The interest costs alone will add billions of dollars to the total cost of this war.