For the first time in U.S. history, America is fighting wars — in Iraq, Afghanistan, and Pakistan — funded almost entirely by U.S. government borrowing.This is according to Catherine Lutz, Professor of Anthropology and International Studies at Brown University, and author of a new study on the $4 trillion cost of the war on terror.
While there were many other huge federal expenses – the largest of these probably the nearly $1 trillion Obama stimulus package — this massive borrowing is one of the main reasons for the tremendous budget gaps and the congressional battles over the federal debt cap and how America should close its annual deficits as the next decade passes. It is certain that if the military expenses accumulated since the attack on the World Trade centre in 2001 had not cost America so much, deficits over the last decade would have been smaller. The present threats to federal government programs, including Medicare, can be partially blamed on the decision by the U.S. to react to terrorism primarily by sending hundreds of thousands of troops abroad.
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