Topic: Robert Hormats
The costs of military engagement in Afghanistan and Iraq account for well over one-quarter of the increase in US national debt since 2001. Financing wars and defense build-ups in this way is an historical aberration. Americans have typically paid for wars through higher taxes.
Economists call for greater thrift, less dependence on foreign oil, and a closer watch on Wall Street.
War spending, trade deficits, and devaluation against foreign currencies weigh on the greenback.