Professor Linda Bilmes of the Harvard Kennedy School warns that the true costs of the Iran war are being significantly underestimated, and could run to over $1 trillion.
| PULSE POINTS |
❓ WHAT HAPPENED: A Harvard study estimates that the U.S.-Iran war could cost over $1 trillion. Notably, early Pentagon-reported expenses hit $11.3 billion in just six days of conflict. Professor Linda Bilmes of the Harvard Kennedy School and former Assistant Secretary and Chief Financial Officer in the Clinton Commerce Department warns that the true costs, including replacement of military assets and long-term liabilities, are significantly underestimated. 📰 DETAIL: Bilmes’s analysis suggests that the Pentagon’s reported costs are based on outdated inventory values, underestimating actual replacement expenses. For instance, the cost of replenishing interceptors and missiles is far higher than the production costs of Iran’s cheaper drones. The study also highlights the long-term financial strain from rebuilding damaged infrastructure and providing disability benefits to troops exposed to hazards. 💬 KEY QUOTE: “The result is that the interest costs alone will add billions of dollars to the total cost of this war. And unlike the upfront costs, these are costs we are explicitly passing on to the next generation.” – Professor Linda Bilmes. 🎯 IMPACT: The financial implications of the Iran war could lead to unprecedented military spending, with the White House requesting a defense budget increase to $1.5 trillion. Such an expansion would mark the largest military budget increase since the Second World War, amid concerns over the current public debt. 📺 FLASHBACK: The Iraq war, which cost over $2 trillion, occurred when U.S. public debt was under $4 trillion. By contrast, the current U.S. debt exceeds $31 trillion, underscoring the significantly higher financial risks of the Iran conflict. Bilmes is also the co-author of The Three Trillion Dollar War, about the Iraq invasion. |
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