The U.S. government opportunity cost for fighting the Global War on Essay

The U.S. government opportunity cost for fighting the Global War on Terrorism - Essay Example (Belasco, 2007) Opportunity costs of the global war on terror are crucial because they give an insight into other alternatives that the government would have sought if they had not invested in the war. They are also a means of measuring the effect of the measured direct costs of the war. The global war on terror has had serious implications on expenditure patterns in the country owing to the fact that some local expenditure had to be foregone. This has eventually reduced the public’s perception of their well being. Additionally, the global war on terror has caused the US government to reduce the amount of expenditure that they dedicate to economic investments. For instance, the US government has had to reduce the amount they spent on construction of residential buildings. They have also reduced the expenditure on health and education within the country. Investments in fixed businesses and also in infrastructural facilities have been much lower than they were before the global war on terror. It is particularly alarming that the global war on terror has caused a reduced investment in health because this is a crucial sector of the US economy. If people within the country cannot access quality health facilities or services, then they are likely to have lower living standards. This impacts on the GDP very negatively. According to the Congressional Budget Office, the United States government has dedicated six hundred and fifty one billion dollars on the global war on terror between 2001 and 2007. It should be noted that these estimates do not incorporate what has happened this year. Additionally, many other experts assert that this is a large under estimation. In fact, they argue that these are merely direct costs. (Chernick, 2006) The Congressional budget estimates were derivatives of what the US government has spent on disability compensation, military operations, survivor benefits and medical costs. As it can