Reflecting on 9-11: A US Response More Costly than the Attacks (Stiglitz)
Sunday, September 11, 2011 at 11:14 | Scott Lucas in EA Global, EA USA, US Foreign Policy, US Politics 
Even if Bush could be forgiven for taking the United States, and much of the rest of the world, to war on false pretenses, and for misrepresenting the cost of the venture, there is no excuse for how he chose to finance it. His was the first war in history paid for entirely on credit. As the US went into battle, with deficits already soaring from his 2001 tax cut, Bush decided to plunge ahead with yet another round of tax “relief” for the wealthy.
Today, the US is focused on unemployment and the deficit. Both threats to America’s future can, in no small measure, be traced to the wars in Afghanistan and Iraq. Increased defense spending, together with the Bush tax cuts, is a key reason why the US went from a fiscal surplus of 2 per cent of GDP when Bush was elected to its parlous deficit and debt position today. Direct government spending on those wars so far amounts to roughly $2tn - $17,000 for every US household - with bills yet to be received increasing this amount by more than 50 per cent.