President Bush has asked Congress for 74.7 billion for the war in Iraq, related foreign aid and other anti-terrorism measures. How will the cost of this war affect the already struggling American economy, American jobs and businesses?

Alan Sinai, chief global economist for Primark Decision Economics, Inc., says that the full cost of war, which he expects to exceed $75 billion, will ultimately be a drain on the American economy, particularly the real estate and housing markets.

Benjamin Friedman, Professor of Economics at Harvard University, says that the cost of war will add to the federal budget deficit, which in a full-employment economy, will put a major burden on American businesses and the American cost of living.

Click the “Listen” link above to hear more about how the war in Iraq will affect the American economy both in the short term and in the long run.

Guests:

Benjamin Friedman, Professor of Economics at Harvard University

Alan Sinai, chief global economist, Primark Decision Economics, Inc.

Richard Kogan, Senior Fellow at the Center on Budget and Policy Priorities.