"CBO Forecasts ‘Staying the Course’ In Iraq Would Increase Deficit By $1.3 Trillion Over Next Decade"
Today, the Congressional Budget Office released its budget projections, estimating the deficit will rise to $286 billion in fiscal 2007, up from this year’s $260 billion projected deficit. Moreover, the long-term outlook remains bleak; total deficits over the next decade are estimated at $1.7 trillion.
The CBO offers an analysis of the impact that the Iraq war will have on future deficit numbers based on different policy options we could pursue. The highlighted numbers in the chart below compare the impact on the deficit between a “stay the course” strategy and a phased withdrawal. The numbers make for a strong economic argument for redeployment.
A phased withdrawal would save $416 billion on the deficit over the next four years and $1.28 trillion over the next decade. On the other hand, a strategy of “stay the course” will increase the deficit by $313 billion over the next four years and $1.3 trillion over the next decade.