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CNN Live Sunday

What Will War With Iraq Cost Taxpayers?

Aired March 02, 2003 - 18:18   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


FREDRICKA WHITFIELD, CNN ANCHOR: Earlier this week, CNN aired a report summing up the cost of a potential war like this. Every family in America will likely pay $1,000 to $2,000 a year for 10 years to help finance that war. CNN's Patty Davis has also been looking into those ever-changing figures and here's what she found out about hidden costs.
(BEGIN VIDEOTAPE)

JIM PAZIENZA, UNIGLOBE TRAVEL AGENCY: OK, if you want to add the airfare on from San Antonio...

DAVIS (voice-over): There are fewer customers these days at Jim Pazienza's travel agency in Washington, D.C., due to a weak economy and uncertainty over war with Iraq is cutting into profits too.

PAZIENZA: We've noticed people staying closer to home, not traveling to Europe as much.

DAVIS: While the cost of a war could, according to administration sources, reach $95 billion in bullets and bombs the cost to the U.S. economy is already being felt.

DIANE SWONK, ECONOMIST: There is a bit of paralysis being created by the fear of war itself and once the stand settles, you know, in Iraq, we'll be in a better situation to sort of figure out where we are, where we can go from here.

DAVIS: In Oceanside, California, the fact that thousands of Marines from Camp Pendleton have been deployed to the Middle East is hurting local businesses.

UNIDENTIFIED MALE: Sometimes you have to fight to get a seat here. But now it's easy. I just walk on in, you know. It's pretty sad.

UNIDENTIFIED FEMALE: The last few weeks last month have been pretty slow. We haven't had any business whatsoever.

DAVIS: Economists say a short and decisive war could actually benefit the U.S. economy.

(on camera): Those Marines and their spending power might return more quickly. Oil prices fall, and business investment and consumer spending pick up. (voice-over): But if the war drags on, Iraq uses weapons of mass destruction and there are heavy U.S. casualties, economists say, all bets are off.

LAURENCE MEYER, FORMER FEDERAL RESERVE BOARD GOV.: We could lose 4.5 percentage points of GDP in the following year. Now, that would push the global economy into recession. Unemployment rate would be about two percentage points higher.

UNIDENTIFIED MALE: Move your team across.

DAVIS: Most economists agree the U.S. economy is in much better shape to endure war this time than the last Gulf War in 1991. For now, consumers are playing it safe. Jim Pazienza is determined to wait them out. With business down 15 percent, he's put a hold on hiring and is looking for ways to cut costs.

Patty Davis, CNN, Washington.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired March 2, 2003 - 18:18   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Earlier this week, CNN aired a report summing up the cost of a potential war like this. Every family in America will likely pay $1,000 to $2,000 a year for 10 years to help finance that war. CNN's Patty Davis has also been looking into those ever-changing figures and here's what she found out about hidden costs.
(BEGIN VIDEOTAPE)

JIM PAZIENZA, UNIGLOBE TRAVEL AGENCY: OK, if you want to add the airfare on from San Antonio...

DAVIS (voice-over): There are fewer customers these days at Jim Pazienza's travel agency in Washington, D.C., due to a weak economy and uncertainty over war with Iraq is cutting into profits too.

PAZIENZA: We've noticed people staying closer to home, not traveling to Europe as much.

DAVIS: While the cost of a war could, according to administration sources, reach $95 billion in bullets and bombs the cost to the U.S. economy is already being felt.

DIANE SWONK, ECONOMIST: There is a bit of paralysis being created by the fear of war itself and once the stand settles, you know, in Iraq, we'll be in a better situation to sort of figure out where we are, where we can go from here.

DAVIS: In Oceanside, California, the fact that thousands of Marines from Camp Pendleton have been deployed to the Middle East is hurting local businesses.

UNIDENTIFIED MALE: Sometimes you have to fight to get a seat here. But now it's easy. I just walk on in, you know. It's pretty sad.

UNIDENTIFIED FEMALE: The last few weeks last month have been pretty slow. We haven't had any business whatsoever.

DAVIS: Economists say a short and decisive war could actually benefit the U.S. economy.

(on camera): Those Marines and their spending power might return more quickly. Oil prices fall, and business investment and consumer spending pick up. (voice-over): But if the war drags on, Iraq uses weapons of mass destruction and there are heavy U.S. casualties, economists say, all bets are off.

LAURENCE MEYER, FORMER FEDERAL RESERVE BOARD GOV.: We could lose 4.5 percentage points of GDP in the following year. Now, that would push the global economy into recession. Unemployment rate would be about two percentage points higher.

UNIDENTIFIED MALE: Move your team across.

DAVIS: Most economists agree the U.S. economy is in much better shape to endure war this time than the last Gulf War in 1991. For now, consumers are playing it safe. Jim Pazienza is determined to wait them out. With business down 15 percent, he's put a hold on hiring and is looking for ways to cut costs.

Patty Davis, CNN, Washington.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com