[PianoMan]

some Gulf analysts fear a rebuilt Iraq will be a powerhouse that could squeeze the region's other economies over the long term.

Talk about your outdated economics!!

The economy of a region of the world is not like a pie, where a bigger piece by one country reduces the size of the others!

Even JFK in 1964 understood that economically, a rising tide lifts all boats.

Or do I miss something?

[PianoMan]

Other than the fact that JFK was killed in 63, did I miss something?

[Guillermo]

I was about to make the same point.

Economics is not a zero sum game.

[okie01]

...some Gulf analysts fear a rebuilt Iraq will be a powerhouse that could squeeze the region's other economies over the long term.

Obviously, these "Gulf analysts" studied under Democrat economics professors.

[Joe Hadenuf]

Even JFK in 1964 understood that economically, a rising tide lifts all boats.

That's right, and it floated our manufacturing boat all the way to China.

[Sonny M]

Alot of liberals, and especially democrats, do not believe that wealth can be created or in anything such as new wealth. It is a liberal concept that all moneies and wealth are mearly transferred back and forth, and that wealth is a limited resource. Obviousley, I do not believe such hogwash, and it amazes me that so many people are so ignorant that they do.

[kabar]

I think you are missing something. The world demand for oil remains a fairly fixed, albeit increasing, amount. If the Iraqis increase their oil supply, the price of oil will go down since the world supply will exceed demand. Countries like Saudi Arabia, Kuwait, Oman, etc. will have not only a smaller size of the pie, but also, will experience a lower price per barrel. Hence, lower revenues will result.

The economies of the countries of the region depend heavily on oil revenues. Most don't even have income tax. They also provide all kinds of subsidies to the populace including free medical care, free university educations, monetary assistance to purchase homes, etc. Without these subsidies, there could be domestic political unrest and upheaval. It will be interesting to see whether Iraq will continue to belong to OPEC and agree to limit production.