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War Savings for U.S. ‘Nation-Building’ Years Away, Analysts Say

In his June 22 speech announcing the withdrawal of 33,000 U.S. troops by September 2012, President Barack Obama said that “it is time to focus on nation-building here at home.”

Andrew F. Krepinevich, president of the Washington-based Center for Strategic and Budgetary Assessments, a policy research institute that examines national security issues, said that as much as the wars in Iraq and Afghanistan have cost -- more than $1 trillion over a decade -- Medicare and Medicaid spending are projected to be bigger drivers of the debt.

Krepinevich said that in calling for domestic “nation- building,” Obama isn’t being literal so much as promising to redirect war spending to deficit reduction.

“I think what the president means to say is, ‘Look, we’re spending $100 billion a year in Afghanistan. I’d rather be in a position to put that $100 billion to work for the American people, the American economy,’” Krepinevich said. “Deficit reduction contributes to a strong economic foundation here at home that provides for the economic growth that will benefit all Americans over the long run.”