Posts filed under “War/Defense”

Comparing Various War Expenditures

Yesterday, we looked at the costs of various one time events versus the bailouts. It took one year of bailouts to rack up the debt totals of 206 years of war, westward expansion, space exploration, etc.

The chart we created omitted numerous conflicts (WWs, the Civil War, etc.) and I was curious as to actual costs of them, adjusted for Inflation.

Reader Ernst Mayer turned me on to this analysis by Stephen Daggett, a specialist in Defense Policy and Budgets. Daggett’s table (shown below) gives you our war spending details, but — spoiler alert –  no other military engagement remotely compares to the financial costs of WWII.  Total inflation adjusted spending: over 4.1 trillion dollars. That was about 36% of GDP.

Incredible.

>

Years of War Spending Peak Year of War Spending
Total Military Cost of War in Millions/Billions of Dollars War Cost % GDP in Peak Year of War
American Revolution

Current Year $

Constant FY2008$

1775-1783

101 million

1,825 million

NA
War of 1812

Current Year $

Constant FY2008$

1812-1815

90 million

1,177 million

1813
2.2%
Mexican War

Current Year $

Constant FY2008$

1846-1849

71 million

1,801 million

1847
1.4%
Civil War: Union

Current Year $

Constant FY2008$

1861-1865

3,183 million

45,199 million

1865
11.3%
Civil War: Confederacy

Current Year $

Constant FY2008$

1861-1865

1,000 million

15,244 million

NA
Spanish American War

Current Year $

Constant FY2008$

1898-1899

283 million

6,848 million

1899
1.1%
World War I

Current Year $

Constant FY2008$

1917-1921

20 billion

253 billion

1919
13.6%
World War II

Current Year $

Constant FY2008$

1941-1945

296 billion

4,114 billion

1945
35.8%
Korea

Current Year $

Constant FY2008$

1950-1953

30 billion

320 billion

1952
4.2%
Vietnam

Current Year $

Constant FY2008$

1965-1975

111 billion

686 billion

1968
2.3%
Persian Gulf War /a/

Current Year $

Constant FY2008$

1990-1991

61 billion

96 billion

1991
0.3%
Iraq /b/

Current Year $

Constant FY2008$

2003-Present

616 billion

648 billion

2008
1.0%
Afghanistan/GWOT /b,c/

Current Year $

Constant FY2008$

2001-Present

159 billion

171 billion

2007
0.3%
Post-9/11 Domestic Security (Operation Noble Eagle) /b/

Current Year $

Constant FY2008$

2001-Present

28 billion

33 billion

2003
0.1%
Total Post-9/11–Iraq, Afghanistan/GWOT, ONE /d/

Current Year $

Constant FY2008$

2001-Present

809 billion

859 billion

2008
1.2%

>

Source:
Costs of Major U.S. Wars
Stephen Daggett, Specialist in Defense Policy and Budgets
Foreign Affairs, Defense, and Trade Division
Congressional Research Service Report for Congress (RS22926)
24 July 2008

http://www.history.navy.mil/library/online/costs_of_major_us_wars.htm

Category: War/Defense

Iraq and Afghanistan 2008

Via NYT > Source: A Year in Iraq and Afghanistan ADRIANA LINS de ALBUQUERQUE, ALICIA CHENG AND SARAH GEPHART NYT, February 14, 2009 http://www.nytimes.com/2009/02/15/opinion/15opchart.html

Category: Digital Media, War/Defense

Gaza Confliict

The WSJ has a nice interactive map showing the details of the Israeli/Hamas battle: > click for interactive graphic: via WSJ

Category: Digital Media, War/Defense

Why We Haven’t Been Attacked Since 9/11

Barron’s Alan Abelson comes forth with the reason why the terrorists have not attacked the USA since 9/11. They didn’t have to: Thanks to his vigilance, this nation was spared a terrorist attack after 9/11. And so it was, for which we are all profoundly grateful. And only the most vehement Bush-basher would sniff that…Read More

Category: Financial Press, Politics, War/Defense

A conversation about National Intelligence

A conversation about National Intelligence with David R. Ignatius author and columnist for “The Washington Post”, Mark Lowenthal, President and CEO of the Intelligence & Security Academy and John McLaughlin, former American Deputy Director of Central Intelligence and former Acting Director of Central Intelligence

Category: Video, War/Defense

The Three Trillion Dollar War

Excellent infographic depicting the enormous costs of the Iraq war. It explains in 10 steps why Secretary of Defense Donald Rumsfeld’s 2003 estimates of the war in Iraq’s costs at $60 billion were so wildly off by 10 times that figure. click for really ginormous graphic By the time the United States leaves Iraq, the…Read More

Category: Digital Media, War/Defense, Web/Tech

Mike McConnell, Director of National Intelligence

Charlie Rose has a conversation with Mike McConnell, Director of National Intelligence:

January 8, 2009

Category: Video, War/Defense

Earnings Estimates Fall

If you missed John Mauldin’s weekend piece (2008: Annus Horribilis, RIP), have a look at these estimates for earnings in 2008. They started at $92 (early ’07) and came down to $48: > Not exactly confidence inspiring when it comes to stock analysts.If you want to understand why we prefer to rely on objective data…Read More

Category: Credit, Favorite, Federal Reserve, War/Defense

Dear Mr. Ex-KGB

Vitaliy N. Katsenelson, CFA, is director of research at Investment Management Associates in Denver, Colo., and he teaches a graduate investment class at the University of Colorado at Denver. He is the author of “Active Value Investing: Making Money in Range-Bound Markets” (Wiley 2007). ~~~ Dear Mr. Ex-KGB I’ve received so many emails about the…Read More

Category: BP Cafe, Markets, War/Defense

US Military Force Structure

One view of the force structure (UNCLASSIFIED), via a briefing originated at JFCOM.  This briefing like others should be available from the SecDEF’s office. Force Structure FY09 Beyond Publish at Scribd or explore others: Military/War History ent spending terrori us budget governm This is a USMC brief on the next coming fiscal years for them…Read More

Category: BP Cafe, Taxes and Policy, War/Defense