. . is dumped out of the economy, never to return. It does not recirculate and eventually the drain starts to show.
With Iraq it's definitely showing, because the economy was already weakened by continuous warfare (hot and cold). Now there's not even enough money to finance jobs and material to replace the ordinance we're using up.
Here's just a little corner of it. http://www.clovegard...m/ajg/junk01.html but unlike most this is recoverable - at about $0.01 on the dollar spent. A lot more is scattered about in foreign lands, at great expense for getting it there.
Any "value" created in war is tiny compared to the monumental waste and drain on the economy.