By Joseph E. Stiglitz and Linda J. Bilmes

Overview: The Three Trillion Dollar War: The True Cost of the Iraq Conflict is a groundbreaking analysis by Nobel Prize-winning economist Joseph E. Stiglitz and Harvard University’s Linda J. Bilmes. The book provides an in-depth examination of the financial and human costs of the Iraq War, offering a sobering perspective on the true expenses associated with the conflict.

Authors:

• Joseph E. Stiglitz is a renowned economist and Nobel laureate known for his work on market failures and international economics. He served as the Chief Economist of the World Bank and has authored several influential books and papers on economic issues.
• Linda J. Bilmes is a Harvard University professor specializing in public finance and budgeting. Her research focuses on the costs of war, public sector finance, and economic policy.

Summary: In The Three Trillion Dollar War, Stiglitz and Bilmes reveal that the true cost of the Iraq War far exceeds the initial estimates provided by the U.S. government. While the official figures at the time of the war’s initiation were in the hundreds of billions, the authors conservatively estimate that the total cost will surpass $3 trillion. This figure encompasses not only the direct expenditures on military operations but also the long-term financial obligations that are often overlooked in public discourse.

Key insights from the book include:

1. Direct and Indirect Costs: The authors break down the costs into direct expenditures (such as military operations, equipment, and reconstruction efforts) and indirect costs, including long-term care for veterans, interest on borrowed funds, and the economic impact of the war on broader U.S. society.

2. Veteran Care and Disability Benefits: A significant portion of the total cost is attributed to the care and compensation for injured veterans. The book highlights the substantial financial burden of providing disability benefits and healthcare services to thousands of veterans who have suffered both physical and psychological injuries.

3. Economic Impact: Stiglitz and Bilmes discuss how the war has affected the U.S. economy, including its impact on federal budgets, inflation, and the broader economic landscape. The costs of borrowing to fund the war and the economic consequences of increased national debt are also examined.

4. Hidden Costs: The book exposes various hidden costs that have been largely ignored in public debates. These include the long-term economic impact of the war on future generations and the opportunity costs of the resources spent on the conflict.

5. Call to Action: The authors advocate for greater transparency and accountability in how war costs are calculated and communicated. They urge Congress and the administration to honor the sacrifices made by service members by ensuring that adequate resources are allocated for their care and support.

The Three Trillion Dollar War is a critical resource for understanding the full financial impact of the Iraq War, providing a detailed and comprehensive analysis of costs that have often been underestimated or ignored. It serves as an important reminder of the long-term consequences of military conflicts and the need for responsible fiscal management.