OBAMA DOES A LOUIS XVI
NEW YORK November 30, 2009
American would not have won independence from Great Britain without generous military and financial support from France and its monarch, Louis XVI.
But France spent itself into bankruptcy supporting the American colonists. France’s financial ruin was a major cause of the ensuing French Revolution that cost the unfortunate Louis his head.
 
Wars are hugely expensive. Money plays as great a role in them as soldiers and weapons.  
 
US Congressman David Obey, a Wisconsin Democrat who is chairman of the powerful House Appropriations Committee, has come up with a novel idea:   American should pay for the wars they are currently waging.
 
Obey’s proposal, which is backed by other congressmen of both parties, sounds startling – until one realizes that both the Bush and Obama administrations have never properly financed their foreign wars by forcing Americans to pay for them through higher taxes.
 
Instead, Washington has deferred the $1 trillion to date costs of the Afghanistan and Iraq wars by simply adding them to the national debt, and paying interest on the balance owing. President Lyndon conducted similar financial slight of hand with the Vietnam War, inflicting serious injury and instability on the US economy.
 
Few Americans feel the real financial costs of these wars. Future generations will get stuck with the bill.
 
But this kind of deceptive national accounting is becoming increasingly difficult in the face of President Barack Obama’s $1.4 trillion deficit this year,  and his imminent decision to send some 30,000 more US troops to Afghanistan.
 
Each American soldier in Afghanistan costs at least $1 million per annum, according to the US Congress Research Service. Thirty thousand more US troops will thus cost $30 billion in additional war costs on top of the $200 billion annual cost of garrisoning Iraq and Afghanistan – now the second most expensive wars in US history. 
 
Much of this money will have to be borrowed from China and Japan.
 
Obey and his allies want to impose a graduated surtax on Americans of 1-5%, depending on their income level, to fund the actual costs of what are now Obama’s wars. Otherwise, warns Obey, the huge cost of sending keeping up to 100,000 US troops in Afghanistan will `destroy the other things we are trying to do in our economy.’ Chief among which is health care. 
 
In a clear choice between guns or butter, Obey estimates ten years of war in Afghanistan will cost the same $900 million as providing a comprehensive health plan for all Americans.
 
Unfortunately, chances of a war surtax passing Congress are nil. While the Afghan and Iraq wars are increasingly unpopular among Americans, a tax increase at a time of over 10% unemployment will ignite the same kind of furious reaction that met President Obama’s proposed national health plan, and endanger  Democrats facing midterm elections.
 
As the Obama administration appears set to escalate the war in Afghanistan,  the real costs of Afghanistan and Iraq are still being concealed from the public and Congress.   
 
A billion here; a billion there; suddenly, we are taking about real money.
 
The $200 billion annual cost for both wars is only a part of the growing expenses faced by Washington.
 
The annual bill for US intelligence, which employs over 200,000 people, has doubled to $75 billion, in large part to support foreign wars and operations against anti-US Muslim groups.  
 
Costs of occupying Afghanistan rose to $300 billion this year, and will increase sharply next year. Operations in Iraq will total  $684 billion in 2009. President Barack Obama’s plans to withdraw all US troops from Iraq by 2011 may encounter serious delays and snags as resistance resumes and the underground Ba’ath Party become more active.
 
Washington spends $25 billion funding foreign armies, the bulk of which goes to the Mideast, Afghanistan, Iraq and Pakistan.   Aid to Islamabad will rise to $15 billion over the next five years, including secret `black’ payments.  
 
The US supports 168,000 `contractors’ in Iraq, many of them gunmen. CIA runs 74,000 mercenaries in Afghanistan.  The new fortified, 104-acre US Embassy in Baghdad will cost $700 million; the new embassy in Islamabad, $800 million. Islamic militants call them `crusader castles.’
 
Add to these costs the expense of maintaining fleets in the Gulf and Indian Ocean, and military bases in the Gulf and Diego Garcia to support operations in Iraq and Afghanistan; hugely expensive military airlift; $400 per gallon fuel delivered to US forces in Afghanistan; and, of course, financial inducements to many smaller nations to send handfuls of troops to Afghanistan and Iraq. Also an important part of the annual $93 billion in veterans benefits.
 
Thus the real cost of Afghanistan and Iraq are much higher than $200 billion annually. Yet President Obama, heedless of such costs, appears determined to expand the Afghan War. It seems clear that Obama has fallen increasingly under the influence of America’s powerful military-industrial-financial complex and neoconservative war party.  In short, the same calculus of forces that guided the Bush administration.
 
Even America’s mighty economy cannot for long support waging wars across  the Muslim world. Unaffordable wars have been the ruin of many an empire, and the American Raj seems headed in the same direction as Nobel Peace Prize winner Barack Obama plunges ever deeper into the Afghan quagmire.  
 
 
copyright Eric S. Margolis 2009
 
 
 
  
 
 
Edward
Monday, November 30, 2009 7:07 PM
A question: Is it "$ 400.00 per gallon fuel delivered..." or just $ 4.00 per gallon...?
My regards.
Dik
Monday, November 30, 2009 9:08 PM
I suspect with the cost of bringing this through Pakistan, that the cost is closer to $400...

Dik
Pushton
Wednesday, December 02, 2009 5:38 PM
Pakistani knows how to take his commissions,,,,
qyousuf
Tuesday, December 01, 2009 2:42 PM
If you consider the supply routes, from Pakistan and airlifted over central asia, the cost of these supplies are huge. Its a pity that Western powers don't infuse a tiny amount of these wasteful dollars to educating and bringing cultures closer- The whole problem ties into capitalism and its need to find markets of raw materials that are going to keep the western nations richer than others for generations to come- we need collective thought and security to come out alive from this murderous orgy of violence and finance.
Stormcrow
Tuesday, December 01, 2009 8:01 AM
The inability of democracy to get to the heart of problems will be its undoing. A serious re-thinking of democracy, of taxation, of real costs and long-term indebtedness is long overdue. Perhaps the most profound, yet unoticed development in the 20th century was the death of philosophy. God is not 'dead', he's just no longer a pressing topic of discussion or study. The discussion of philosophy, God or not, provides insight into the nature of human existence. I'm no longer sure that's welcome in today's society...far easier to 'freewheel' philosophically on our own, disregard the collective purpose or 'point' of life, turn on the tube and ignore the men behind the curtain.
Our only hope as a planet and species is that we have a social-spiritual-philosophical revolution that rejects theology and materialsim, and once again turns our thoughts towards the nature of humankind, its purpose and direction.
Jim Haygood
Tuesday, December 01, 2009 9:30 AM
'In a clear choice between guns or butter, Obey estimates ten years of war in Afghanistan will cost the same $900 million as providing a comprehensive health plan for all Americans.'

Even if a surtax on the wealthy could be passed, its effect would be to suppress consumption and send the economy spiraling back down into a double-dip recession.

Fundamentally, the U.S. cannot afford both a costly overseas military empire and a comprehensive welfare state at home. One doesn't need a PhD Econ to see this -- it's pretty obvious to anyone who runs a household and balances a budget.

The slow-motion tragedy of Ben Bernanke's printing-press currency is that it allows Congress to avoid the difficult task of setting spending priorities. A typical Democratic-Republican 'compromise' is to fund ALL the spending proposals of BOTH parties. In this insider dealing, the taxpayers are the unrepresented third party.

Given the deep-seated perverse incentives, all signs point to our internally corroding empire being pushed to the brink of financial ruin -- AND BEYOND. Those in charge have impressive qualifications, but lack common sense.
Pleab
Thursday, December 03, 2009 8:10 PM
I agree with most of what you've said-- with one exception. Taxing the rich will not hurt economic growth. In fact a surtax on the wealthiest people could very well help the economy recover.
Why? Because wealthy people who get tax breaks tend not to spend the extra money they recieve. They don't have to. They can invest the money, put it in a bank or perhaps move it offshore. This does nothing for the economy. On the other hand, the less wealthy need to spend every penny they get. And they do. They also contribute most of the fighting men now dying in places like Iraq and Afganistan.
Beyond the question of who pays, it's a matter of fairness. We can't continue throw money at wealthy people while the middle is being crushed. It's an old song but the rich are getting richer and the middle seems to be vanishing. The wealthiest Americans got massive tax cuts during the Bush years while his administration contnued to spend like drunken sailors. America has never fought a war without asking all citizens to contribute to that effort in the form of higher taxes. Not this time.
Tax the people who have benefitted from Bush's war and tax policies. It's outrageous that they were not asked contribute to the 'war on terrorism' in the first place. And just you wait and see what happens when the middle class realizes that they willl be the ones who are asked to pick up the tab for the run away spending of the last two Presidential administrations. They will pay in the form of higher taxes but also bare the brunt of massive service cuts to programs from which they benefit. The government will have no choice considering the almost unimaginable 10+ trillion dollar debt. Healthcare for all you say Obama? Not likely.
RadicalRaul
Wednesday, December 02, 2009 1:09 AM
Sorry to say, but I saw this coming.

The U.S.A. is in dire need of campaign finance reform or a revolution.
paul m
Wednesday, December 02, 2009 11:48 AM
hi Eric
As I mentioned in a earlier posting i said that Obama is clever
he is playing to the military industrial complexes wishes by using the build up and waiting for the army to be thoughly whipped as it was in vietnam, if by accident he wins he is a super hero
if he doesnt then he can start negotiations lke the earlier ones in paris and walk away with peace with honour and have Karazai flipping hamburgers in Nome as cover
either way he cant loose
it wasnt his war and he can show he did his level best to finish it off with the least cost of life
he wont live long enough to see the usa bankrupted by the spending , only his kids will see that
of course the japs and chinese could put and end to it rather quickly by stopping buying treasuries at the next auction but that wont happen as it would upset the status quo and god knows that the asians like to do business as usual
the interesting part will be when china effectively owns half of the us debt and declares the usa is a wayward colony like taiwan
wait and see it will all come out in the wash
paul
Pushton
Wednesday, December 02, 2009 5:41 PM
Always nations pay the price of war.Now Americans are paying the price of war on terror while Bush and Chinney make the money from this war.
TMK
Thursday, December 03, 2009 1:10 PM
I believe that American government is spending money for nothing because they can't win this war for sure. They keep claiming that they will pull out from Afghanistan by July 2011 but the thing is how they are certain that they would prevail! It will be disastrous for American economy to sustain for long time in a war against the unconventional fighters. On the other hand Talibans are terrorists, cruel, ignorant, backward, and stubborn; they like this kind of violent environment to be in any way.
sheba69
Wednesday, December 09, 2009 9:36 AM
All said and done, the Surgeon Generals operating on the Americans has duped the patients to undergo tonsillectomy through the other end of the orifice. Need we elaborate on the difficulties and complications that follow including tragic terminal outcome. God protect a great nation and the people of America.
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