During the Clinton Administration, 22 million jobs were added to the U.S. economy. During the Bush Administration, only 5 million jobs were added- and then lost again. There was a $160 billion annual federal budget surplus at the end of the Clinton Administration. There is a $500 billion annual deficit at the end of the Bush Administration. It is projected to increase to more than $1 trillion in the current fiscal year.

This sea of red ink has tripled the national debt. Fully 75% of the $9 trillion national debt was created under the watch of just 3 presidents- Reagan and the two Bushes. Each person in America now owes over $30,000 of the national debt, much of it to the sovereign wealth funds of foreign countries. Foreigners are buying up U.S. assets at flea market prices.

One job after another is being outsourced, and entire industries are being relocated to countries with cheap labor. Workers here in the U.S. are pressured to accept reduced wages and benefits, and this often includes basic necessities such as sick leave and health care coverage. Average wages and salaries have barely increased over the last 8 years, while the costs of food, energy, housing, and health care have skyrocketed. Our lower standard of living has undermined the fundamental strength of the economy.

In the midst of this crisis, President Bush presented a record increase in defense spending as part of a $3 trillion budget that would reduce the growth of Medicare and Medicaid and eliminate an array of domestic programs. At a time when we need to be creating jobs and investing in infrastructure, the President called for $1 trillion in tax cuts to people making over $450,000 per year. At a time when so many families are struggling here at home, the President asked for nearly $1 trillion to continue the occupation of Iraq.

The residents of Vancouver spent more on the Iraq war than they spent on public services or education. The Federal government spent an estimated $572 billion on the military in 2007. Direct costs of the Iraq War since the occupation began total about $600 billion. This amounts to about $2,000 for every U.S. resident. That’s more than the combined GDPs of Sweden and Thailand, and eight times federal spending on education. Multiply $2,000 times Vancouver’s population of 144,000, and it comes to $288 million. The annual budget of the City of Vancouver is $241 million. The annual budget of the Evergreen School District is $204 million.

The best estimate of the direct and indirect costs of the war by Nobel Prize Economist Joseph Stiglitz puts the figure at close to $3 trillion. That’s about $10,000 for each U.S. resident. Multiply that number times the population of Vancouver, and you get $1.4 billion.

What are the long-term economic impacts of the war? Military expenditures for the wars in Iraq and Afghanistan, combined with huge tax cuts for the wealthy, caused massive budget deficits. Budget deficits are not free, we must borrow to cover those expenses. The money we borrowed to pay for the war (and for tax cuts and bank bailouts) will have to be paid back to investors by our children.

Not so well known is the fact that ballooning federal budget deficits also contributed to the collapse of the dollar, and that in turn led to higher import prices, especially for oil and commodities. The Iraq war has also made the supply of oil from the Middle East much less reliable, and oil companies passed along the associated “risk premium” to consumers in the price of gas.

Foreign investors who purchase most of our debt are losing confidence in the strength and solvency of the U.S. Treasury, so they demand higher interest rates to cover the higher risk. Higher interest rates mean higher monthly payments on mortgages and credit cards, and that is a factor that precipitated mortgage delinquencies and the banking crisis. Homeowners will suffer the effects of mortgage foreclosures and deflated property values for years to come. That has come full circle and led to lower tax revenues and a serious budget crisis for state and local governments, including Washington State and Vancouver.

What’s the solution? The best way to stop all this economic fallout from doing further damage to the economy is to stop borrowing and spending on the war. Consumers can also help by supporting local industries that provide a sustainable alternative to foreign oil: wind and solar energy; biofuels that use locally available resources such as wood waste and farm waste; energy conservation; and recycling of everything from paper, plastics, and metal to road and construction materials. These energy alternatives will help boost local employment and wages, which will be recirculated back into the local economy and create even more jobs.

Employers should also be required to offer reasonable health care coverage to all employees, with costs shared by employer and employee. Widespread coverage would reduce premiums and medical costs and make our state more competitive in the global economy. Family wages and benefits and good working conditions attract high quality workers and businesses to our state, and provide incentives for higher education and training.