Measured in blood and treasure, the war in Iraq has achieved the status of a major war and a major debacle. As of fall 2007, this conflict has cost the United States over 3,800 dead and over 28,000 wounded. Allied casualties accounted for another 300 dead. Iraqi civilian deaths--mostly at the hands of other Iraqis--may number as high as 82,000. Over 7,500 Iraqi soldiers and police officers have also been killed. Fifteen percent of the Iraqi population has become refugees or displaced persons. The Congressional Research Service estimates that the United States now spends over $10 billion per month on the war, and that the total, direct U.S. costs from March 2003 to July 2007 have exceeded $450 billion, all of which has been covered by deficit spending. No one as yet has calculated the costs of long-term veterans' benefits or the total impact on Service personnel and materiel.

The war's political impact also has been great. Globally, U.S. standing among friends and allies has fallen.2 Our status as a moral leader has been damaged by the war, the subsequent occupation of a Muslim nation, and various issues concerning the treatment of detainees. At the same time, operations in Iraq have had a negative impact on all other efforts in the war on terror, which must bow to the priority of Iraq when it comes to manpower, materiel, and the attention of decisionmakers. Our Armed Forces-- especially the Army and Marine Corps--have been severely strained by the war in Iraq. Compounding all of these problems, our efforts there were designed to enhance U.S. national security, but they have become, at least temporarily, an incubator for terrorism and have emboldened Iran to expand its influence throughout the Middle East.

As this case study is being written, despite impressive progress in security during the surge, the outcome of the war is in doubt. Strong majorities of both Iraqis and Americans favor some sort of U.S. withdrawal. Intelligence analysts, however, remind us that the only thing worse than an Iraq with an American army may be an Iraq after the rapid withdrawal of that army.... No one has calculated the psychopolitical impact of a perceived defeat on the U.S. reputation for power or the future of the overall war on terror. For many analysts (including this one), Iraq remains a "must win," but for many others, despite the obvious progress under General David Petraeus and the surge, it now looks like a "can't win."