The Bush administration’s plans for war in Iraq pose a big risk to the economy. While the government claims the cost of the war will be about $50 billion, economist William Nordhaus of Yale University estimates that it could cost as much as $2 trillion, when including the costs of the war, an occupation of Iraq, and higher oil prices. This is more than one and half times as big as the entire federal government spending this year, and would lead to huge cuts in social services and other programs, as well as a massive increase in the federal deficit.