Opportunity cost of Iraq war
Bryant and Stratton College
March 4, 2012
Opportunity cost the cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for. Opportunity cost analysis is an important part of a company’s decision-making processes, but is not treated as an actual cost in
any financial statement. I chose to discuss the U.S. involvement in the Iraq war. I chose this topic because I feel it does affect our economy and my personal life through being military.
When it comes to war, it means spending money. Since the Iraq war kicked off the U.S. spent nearly 320 billion. (Dances, 2011). When it comes to opportunity cost, the Congress made the decision to go to war. The article I found was basically against military spending in Iraq. The author states that all the money could have put to different priorities. In fact, that amount of money could have provided health care coverage for all uninsured children for as long as the Iraq War has lasted; provided four-year scholarships (tuition and fees) to a public university for all of this year’s graduating seniors; built half a million affordable housing units; fully-funded the amount the Coast Guard estimated is needed for port security; tripled the energy conservation budget in the U.S. Department of Energy; and still enough would be left over to reduce this year’s budget deficit by one-third. (Dances,2011)
This topic does relate the economic principle opportunity cost. Opportunity costs of the global war on terror are crucial because...