2. A causal relationship between Iraq spending and the US economy 1. An WWII argument 2. “Over the last 40 years, America has spent an average of 5.7% of gross GDP annually on defense, but Iraq War costs have ranged from.05 % of GDP in 2003 to 1.3% in 2008” (p.383) 3. Recession because of overbuilding of homes and disruption of credit market; oil profits in the long run. 4. Stiglitz and Bilmes: Iraq War investment was to suppress demand in the US b/s goods and services are not bought here; also the cost of Iraq War. 5. Subprime house loan/mortgage (p.371) 6. Historically (from the War of 1812 onward), war spending did force the central government to go into debt into domestic credictors.

3. Iraq Conflict: The Historical Background 1979: –Shan Mohammad Reza Pahlavi and his regime were replaced by Shiite Muslim and the anti-American leader Ayatollah Khomeini. –Iran hostage crisis 1980~1988 –Iran-Iraq War –Regan administration leaned toward Iraq 1990 –US policy shifted in 1990, when Saddam ordered invades Kuwait, declaring the oil-producing nation a province of Iraq –Saudi Arabia was about to be the next target for Iraq 1991 –President George H. W. Bush assembled a military coalition that drove Iraq out of Kuwait after 100 hours of ground fighting 1991~2001 –US force protected Kurdish enclave in the northern mountains –US war planes patrolled over both northern and southern Iraq and prohibiting Saddam from bombing Kurds and Shiites 2001 –Sept. 11 terrorist attacks in NY March 19, 2003 –The outbreak of the second Gulf War April 9, 2003 –U.S. troops had started taking over Baghdad

4. Pace of Iraq Pullout Part 3 13:38~14.42 general perspective 16:40~18:50 pullout http://www.cnn.com/2008/POLITICS/09/27 /debate.poll/index.html#cnnSTCVideohttp://www.cnn.com/2008/POLITICS/09/27 /debate.poll/index.html#cnnSTCVideo