The other thing is, if they really wanted to give money to Katrina victims, poor, ill, education, etc. they would. It isn't a matter of - no money for Iraq so we'll fund these other things. "Budget" has a different meaning than how most of us real people "budget". They just spend however much they want to.
As for our economy, well, we are still "the most prosperous" nation, and our poor have it good compared to other places (I know, try telling THEM that!). Our unemployment rate is still lower than most anywhere in the world. Our cost of living is lower than many places too, especially our price of gasoline (though we're creeping up there).
But you're right, we aren't the economic powerhouse we once were. That has nothing to do with the war in Iraq, though. It has more to do with NAFTA, which started the outsourcing movement. Our manufactuing base has all but disappeared, so we are importing vastly more than we are exporting.
Sarah, I think everyone agrees that we want the war to end, and we want our soldiers home safe. However, the proposal by the Dems was not the way to do it. If this is just the game they have to play to get to a real change in how forces are utilized in Iraq, then so be it. I would certainly prefer that our troops be utilized to assist the Iraqis in training and security so their fledgling government learns to operate itself and it's own country, rather than leading the security of the country. Perhaps this is the means to that end.