Clearly New Mexico

Tomorrow is income tax filing day, so it's appropriate to review what the Iraq War is costing New Mexico and our country. The human and economic costs of the Iraq war have been enormous. Over 4,000 soldiers have been lost and tens of thousands wounded.

Cost to New Mexico

Cost of war for New Mexico = $1.6 Billion

Cost of Iraq war per family of 4 = $35,000

Total number of NM troops killed = 38

Total number NM troops wounded = 266

NM troops ever deployed (as of Jan. 31, 2008) = 10,983

(NationalPriorities.org)

For the same $1.6 billion that taxpayers in New Mexico have paid for the Iraq War thus far, the following could have been provided:

• 424,892 People with Health Care OR
• 2,487,723 Homes with Renewable Electricity OR
• 41,324 Public Safety Officers OR
• 30,689 Music and Arts Teachers OR
• 375,995 Scholarships for University Students OR
• 187 New Elementary Schools OR
• 16,225 Affordable Housing Units OR
• 564,325 Children with Health Care OR
• 229,074 Head Start Places for Children OR
• 30,890 Elementary School Teachers

Economic Train Wreck: By the numbers

GOP presidential candidate John McCain famously announced that he envisions U.S. troops staying in Iraq for 100 years. This prospect is sobering given the costs to our economy thus far.

The full cost of the war according to Nobel Laureate economist, Joseph Stiglitz, currently stands at $3 trillion. Additionally, "every month we stay in Iraq and Afghanistan is really costing us some $22 billion; every year, more than $250 billion. In another two years, the tally will exceed another half trillion." [Testimony to Joint Economic Committee, February 2008]

Economists see long-term damage from Iraq war. Every month of combat adds more than $10 billion to a U.S. debt that now tops $9 trillion. At some point, government debt comes due and the Treasury Department either must pay it off or roll it over and pay more interest, just like a family facing monthly credit card bills. Higher government borrowing also could push up interest rates, making it more expensive for consumers to borrow for home mortgages and businesses to finance investments. [Reuters, 3/13/08]

Add to those costs that fact that the Iraq War is driving up oil prices. Stiglitz also blames the war for part of the run-up in world oil prices. [Reuters, 3/13/08]

Nine in Ten Americans Say Iraq War Contributing to U.S. Economic Problems. Americans overwhelmingly think that the Iraq war has contributed to US economic problems - 89 to 10 percent [CBS/NYT, 4/7/08].

Impact of the McCain Tax Plan

Senator McCain would continue to pour billions of dollars into Bush's Iraq war and continue to back and even expand Bush's economic policies that favor wealthy special interests. Sen. McCain's economic proposal consists of more of the same Bush policies: tax cuts that skew toward corporations and millionaires.

The McCain plan would deliver approximately $170 billion a year in tax cuts to corporations. Under the McCain plan:

Exxon/Mobil would avoid $1.2 billion in taxes
Chevron would avoid $480 million
ConocoPhillips would avoid $1.2 billion
Valero Energy would avoid $550 million
Marathon Oil would avoid $370 million
(source: American Progress)

The McCain plan would cut taxes for the ten largest U.S. health insurance companies by $1.9 billion a year.

For New Mexico, these impacts couldn't come at a worse time. A recent report from the Center for Budget and Policy Priorities shows that New Mexico now ranks 6th in the nation in income inequality.

"Unfortunately, as the economy slows we can expect that low- and moderate-income families will be hit hard," said Gerry Bradley, Research Director for New Mexico Voices for Children, a statewide child advocacy organization. "Policies that the state put in place in 2007 - raising the minimum wage, creating the state Working Families Tax Credit, and increasing unemployment benefits - were good policies and will help some, but it's like a garden hose compared to the tidal wave-impact of the economy," he added. (link)