> Turnover does not equal profit! If Iraqi shoemakers sell $10m shoes a year,
> they only actually make something like $1m (if they're lucky). So even if the Iraqi
> shoemakers can't find another job (which they would). Iraqis would have 4 million bucks
> extra to spend overall.

So where does the other $9m paid to the shoemakers go? Tools, raw materials, rent. And the people who supplied those things will now all lose their source of income. The $10m lost profit is indeed spread out much more widely than just the shoemakers, but that's irrelevant; the net effect is still the loss of $10m in spending power, only half of which is compensated for by cheaper shoes.