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the costs of afghanistan

Robert Kagan argues that continuing to nation build inside Afghanistan is actually a bargain:

Failure in Afghanistan will cost much, much more than the billions spent on this surge. What was the cost to the U.S. economy of the attacks on 9/11? What will be the cost if the terrorist groups now operating in Afghanistanâ??the Haqqani network, Lashkar-e Taiba, as well as al Qaedaâ??are able to reconstitute safe havens and the next president has to send troops back in to clear them out again? It is a peculiar kind of wisdom that can only see the problems and costs of today and cannot imagine the problems and costs of tomorrow.

This is a particularly interesting line of argument and one that I think undermines Kagan's case for the surge. First - the benchmark is not the costs of 9/11, since there is nothing we're doing inside Afghanistan that will prevent another mass-casualty terrorist attack inside the United States. There are multiple countries that play host to al-Qaeda cells and there is even the possibility of a small number of U.S. citizens banding together to commit some atrocity. Even a large-scale withdrawal from Afghanistan would not be so comprehensive as to leave the U.S. with no means of collecting intelligence or targeting terrorist camps. It is difficult - though not impossible - to imagine a scenario whereby al-Qaeda is able to get itself reconfigured in Afghanistan to the point where they can launch a sophisticated mass-casualty terrorist attack against the continental United States. They have been trying to do so from within Pakistan to no avail and it is far easier to travel from Pakistan to the UK and then from the UK to the U.S. than to travel from Afghanistan into the West.

Still, it's happened once so let's assume for the sake of argument that it does indeed happen again. What would it cost the U.S.? There's no fixed number for the "costs of 9/11" as such, but there are estimates of the economic toll the attacks wrought. The estimated economic cost of 9/11 was in the neighborhood of $40 billion in insured losses and $28 billion in property damage. Other estimates range from $50 - $100 billion in economic costs of the attacks themselves. A World Bank study estimated a $90 billion drop in national income. Finally, a study (pdf) by the Congressional Research Service concluded "that 9/11 is more appropriately viewed as a human tragedy than as an economic calamity. Notwithstanding their dire costs in human life, the direct effects of the attacks were too small and too geographically concentrated to make a significant dent in the nationâ??s economic output."

This doesn't capture all of the economic costs of 9/11, since it led to the creation of new bureaucracies and the war in Afghanistan. And it obviously ignores the devastating human toll, which must be a vital part of any cost/benefit analysis. Still, I think those are serviceable numbers. So at the high-end, the 9/11 attacks cost the U.S. $100 billion. For the fiscal year 2010, the U.S. spent $105 billion in Afghanistan. This year, the figure is expected to be $108 billion. This spending also doesn't capture the human costs nor the costs of long-term care for the wounded who return home unable to work and in need of care. Nevertheless, it seems that it's costing the U.S. far more to conduct a counter-insurgency inside Afghanistan than the economic damage wrought by 9/11.

But Kagan does helpfully elucidate the central argument: the war in Afghanistan is about keeping the U.S. homeland safe from terrorist attacks. Keeping the Taliban from ruling parts of Afghanistan is a means to that end - not the end itself. Properly framed, there are obviously "less expensive" ways of keeping al-Qaeda from attacking the United States.

It's also worth stating that the prospect that anyone will die from terrorism is vanishingly small:

Just to give you some context here, one of my friends, an astronomer, has calculated the worldwide chance of anyone being killed by international terrorism outside of war zones over an 80-year lifetime, assuming, incidentally, that every several years there is another 9/11. It comes out to be 1 in 80,000. Since he is an astronomer, he has also calculated the chance of being killed by a comet or asteroid over a lifetime of 80 years, and it comes out to be about the same.