EconProf – nice points. I don’t have the numbers, but I wonder if these are other points to consider:
1. Iraq and Afghanistan requires far fewer troops, but despite technology advancements or perhaps because of them, it appears it requires much more money in real terms to maintain these troops.
2. Iraq is costing 1/12th of the number of battle deaths as Vietnam – due to advancements in medical technology. However, many more are returning from the battlefield with serious wounds and, not to be harsh, will require extensive rehabilitation and continued medical care – more outlays for the government.
3. The Feds will continue to print money to prop up the GSEs, and perhaps the commercial banks when the FDIC runs dry, continuing to stoke inflation.
