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Cost of the Bailout

Here’s an explanation of the the size of the US economic bailout:

If we add in the Citi bailout, the total cost now exceeds $4.6165 trillion dollars. People have a hard time conceptualizing very large numbers, so let’s give this some context. The current Credit Crisis bailout is now the largest outlay In American history.

Jim Bianco of Bianco Research crunched the inflation adjusted numbers. The bailout has cost more than all of these big budget government expenditures – combined:

Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion

Happy Valley News Hour Comments:

So imagine for a moment that this country is purchasing 828,800 square miles of prime real estate, while simultaneously rebuilding a war ravaged Europe, while simultaneously enacting a mammoth domestic public works program, while simultaneously rescuing 750 odd S&Ls from bankruptcy, while simultaneously building a rocket that will get us to the moon and back (and building the Space Shuttle to boot), while simultaneously fighting wars in Korea, Vietnam, and Iraq. Oh, and we’re doing it all under the leadership of George W. Bush.

In happier news, it looks like the Chinese government will be helping us out on the bailout.  (See also the controversy about Obama’s speaking style).

By the way, the estimated costs of the bailout  is a serious estimate (no joking), although historical comparisons always have problems (read the comments on the man’s blog for some of them).

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