The president’s candid assessment came as voices in the U.S. and abroad criticize the administration for its apparent lack of a plan on how to resolve Iran’s leadership program. Those questions have become especially pointed as estimates of the war’s cost are released. Kent Smetters, director of the Penn Wharton Budget Model, recently told Fortune the total economic toll on the U.S. could reach as high as $210 billion. This figure accounts for direct military expenditures—estimated at up to $95 billion—alongside massive disruptions to trade, energy markets, and financial conditions around the globe.
The consequences extend beyond accounting. As interest costs swell, they crowd out virtually every other national priority. The CRFB projects that rising interest costs will account for 28% of all nominal spending growth over the next decade and 120% of all spending growth as a share of GDP, meaning other programs will effectively shrink in relative terms just to make room.
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