From Peace Dividend to War Surcharge;
Prominent U.S. Economists Oppose Unilateral Iraq
War and Warn of Growing Economic Peril
RIVER, N.Y. - March 5 - Many of the nation's leading economists
today issued a statement opposing a unilateral U.S.-led war against
Iraq and warning policy makers and all Americans that long-term
U.S. and global economic security is at stake.
Economists Allied for Arms Reduction (ECAAR), a New York-based
research and policy organization, the statement is signed by seven
Nobel laureates and a large number of other prominent U.S. economists.
The Nobel laureates are Kenneth J. Arrow, Lawrence R. Klein, Daniel
McFadden, Douglass North, William F. Sharpe, Robert M. Solow and
Joseph E. Stiglitz.
express concern for the "immediate human tragedy and devastation
of war" and that this war might "increase the risk of future instability
and terrorism." They argue "given the precarious state of our
own economy, America requires the attention and focus of leadership
and resources to address economic problems at home." The statement
also says "the American people cannot afford to tolerate a mismanaged
economy or a naive underestimation of America's economic perils."
"The Bush Administration
is not playing it straight with the American public as to the
potential economic consequences of this war," says Professor James
K. Galbraith, LBJ School of Public Affairs at the University of
Texas at Austin. "And with its rush to war, the Administration
is diverting the public's attention away from dire economic problems
that we are not working to solve."
reads, "no administration can credibly promise to solve all problems
simultaneously." It also refers to the following "serious problems"
that the American economy is experiencing "as a result of our
administration's comparative neglect."
business investment has not yet started to recover in most areas
-- resulting in a continuing and growing lack of jobs; focus on
military sector will impede recovery of technology sector
slowdown in consumer spending -- growing household debts; continuing
decline in the U.S. dollar; war could drive up interest rates
and energy prices and unleash major consumer retrenchment
-- State and
local government budgets continue to suffer -- resulting in severe
cuts in services and tax increases, continuing lack of federal
support for homeland security funding requirements, inadequate
attention to health care, education, unemployment, poverty and
"On the brink
of war, it's time for us to take stock and consider all aspects
of what makes us, as a nation, secure," says Columbia University
Economics and Finance Professor Joseph E. Stiglitz, the 2001 Nobel
laureate in economics. "We cannot make this monumental decision
-- to go to war -- without weighing carefully the entire scope
of what is at stake, from the potential for tragic human consequences
to further erosion of our already tenuous economic situation."
Go to http://www.ecaar.org
for the entire statement and the complete list of over 130 signatories.
Based in Pearl River, N.Y., Economists Allied for Arms Reductions
(ECAAR) -- http://www.ecaar.org
-- is an organization of U.S. economists and business leaders
that seek to promote objective economic analysis and appropriate
action on global issues relating to peace, security and the world
economy. The organization can be reached at 845-620-1542 or by
email at email@example.com
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