Source: Fortune
Summary
Linda Bilmes, a Harvard Kennedy School public policy lecturer, estimates that the US will spend at least $1 trillion on the war with Iran, exceeding initial projections of $1 billion per day. The Pentagon has already spent $11.3 billion in the first week of the war, and the cost could reach $35 billion by April 1. Bilmes warns that the US is underestimating the true cost of the war, including long-term expenditures such as disability benefits to veterans and the cost of replacing munitions. The war could also lead to a significant increase in the national debt, with the Trump administration seeking to add $1.5 trillion to the military budget for 2027.
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The numbers tell one story.
The Pentagon’s initial estimate of $1 billion per day is already being dwarfed by the actual cost of the war. Bilmes’s estimate of $1 trillion is a stark reminder that the US is underestimating the true cost of the conflict. The war is also having a disproportionate impact on the US budget, with the cost of replacing munitions and providing disability benefits to veterans adding up quickly. The Trump administration’s efforts to increase the military budget will only exacerbate the problem, leading to a significant increase in the national debt. “In this case, we’re borrowing high rates, largely for things that will end up in the sand,” Bilmes said.
Author: Evan Null
