Economics of U.S. Military Interventions, Part 1

Editor's note: This is the first of two parts on the economics of U.S. military interventions.

A significant portion of the U.S. GDP goes to overseas military interventions. This first will provide data on these interventions, while the second will focus on the effectiveness of the most recent invasions.

Before getting to the numbers, I offer three quotes that are as relevant today as when they were made:

"The spirit of this country is totally adverse to a large military force." Thomas Jefferson, 1806

"This conjunction of an immense military establishment and a large arms industry is new in the American Experience....The potential for the disastrous rise of misplaced power exists and will persist."Dwight D. Eisenhower, 1961

"The terrible military machine...must be in continual motion, grinding up human lives and trampling down the homes and the rights of hundreds of millions of men. Moreover it must be fed, not only with flesh but with oil." Winston S. Churchill, talking of the German invasion of Russia, 1941. "The spirit of the country" appears to be preoccupied with other matters now. The US has developed a large military industry, well connected in Washington and eager to find new markets, both at home and abroad.

Intervention Numbers

Table 1 provides data on the costs of the most significant US military interventions since the Civil War, all in 2010 dollars. It is notable that Iraq has become the second most expensive US war ever. However, World War II, World War I and the Civil War were the most expensive as a percent of GDP. Note the high costs per soldier for Iraq and Afghanistan, a testament to how hi-tech war has become.

Table 2 provides fatality data on the wars. Civil wars nearly always have the highest fatality rates. The Iraq war has a high fatality rate, a probable reflection of the dangers of urban warfare as depicted in book and movie Black Hawk Down.

Budget Numbers

The Congressional Budget Office estimates the total Defense Authorization for 2011 to be $726 billion. Of that amount, $158 billion is included for the Afghanistan and Iraq wars, down from $163 billion in 2010. When military-related outlays are included, e.g., care for Veterans (Veterans Department), nuclear weapons (Energy Department), and control of space (NASA), the total exceeds $1 trillion.