On the costs of war with Iran
San José, CA – This morning, March 8, a week into Trump’s war on Iran, I went to fill up the car’s gas tank. I had been meaning to do this for a few days, but in this case, I paid for my procrastination, with the price of gas at my go-to, independent, local gas station 40 cents a gallon higher, as compared to when I last got gas before the war started.
This is about the same as the increase in the price of regular gasoline nationwide. According to the American Automobile Association, the price of gas had gone up 43 cents a gallon, or more than 14% since the war started on February 28.
I detoured past my daughter’s elementary school on my way home. It looked exactly the same, with a few children playing in the playground, about average for a non-school day. I was thinking of the girls’ school in Iran, which the United States had bombed on the first day of the war, killing some 175 people, mainly young girls, along with their teachers, school staff and likely a few parents. This was one of the United States so called “precision” missiles, which was guided to a civilian target, irrespective of the loss of life.
With the price of future contracts for delivery in April soaring above $100 a barrel on Sunday, March 8, up by almost 40% in the week since the war started, the price of gasoline and other petroleum products have even more room to rise. Diesel fuel is up about 14%, jet fuel is up over 50%, raising costs for trucking firms and airlines, with smaller businesses being hard hit. Larger corporations will use their market power to pass on the costs to consumers, while smaller firms are more likely to take losses, and if higher prices persist, even go out of business altogether.
According to the U.S. military, the war with Iran is costing about $1 billion per day. But Congressional Republicans have given an estimate that is twice as high, or $2 billion per day. Now nine days into the war, $10 to $20 billion dollars have already been spent, and the number grows with each passing day.
Another week and the costs of the war will be almost the same as the money the federal government saved by allowing the Affordable Care Act subsidy expansion to expire. At a time when food aid is being cut, health care is being cut, and more than 300,000 federal government staff have been cut, more and more of the claimed savings from those cuts are being spent on war.