Logistics: Fighting Terrorism Is Expensive

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July 11, 2007: The war on terror has cost $610 billion so far. Current operations in Afghanistan are costing $2 billion, and in Iraq $10 billion, a month. Much of the high cost goes for replacing worn out equipment. The hot and dusty conditions in both Iraq and Afghanistan, are hard on everything, both people and machines. New equipment is constantly being sent in, to deal with roadside bombs and to improve intelligence gathering and communications.

Unlike the Vietnam war, which cost $650 billion (adjusted for inflation), the much larger American economy allows for the war on terror to be paid for without disrupting the economy. Current American defense spending is under five percent of GDP. During the peak years of the Vietnam war, defense spending was 14 percent of GDP. During the peak year of World War II, defense spending consumed half of GDP.

 


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