The War is Bad for the Economy

So says Nobel Laureate Joseph Stiglitz: in an interview in - SPIEGEL ONLINE - News.

Besides saying the true cost of the war is between $1 trillion to $2 trillion, we find this little morsel:

SPIEGEL: If the UN Security Council votes for sanctions over Iran and its oil exports, what would that mean for the world economy?

Stiglitz: It would mean an enormous disruption, as oil prices might rise over $100. You can increase the price from $25 to $40, and people can absorb it. If the price rises above $60, they become unhappy. They start to adjust, they move to smaller cars, drive a little bit less. At $100 or $120, there are major changes in lifestyle. The sales of cars will plummet. Poor people will be facing real problems of heat versus food.