Paul Krugman decries the deficit hysteria, but even he doesn't make much of the connection between our turning off the streetlights (literally) and the Wars, and/or "Defense."
How much do we spend on Defense every week? Between $26-27 billion. What do we get for it? Two horrendous wars that are going nowhere, and over eight hundred bases abroad in nearly 140 countries. Probably half that money is going out of the country, and most of the rest supports industries that are working on what are effectively cost-plus contracts to produce things that will kill, or enable people to kill, many people.
Employment in civilian sectors costs half as much per worker as defense industries. If the same money were spent on infrastructure, or on human services like teaching, twice as many could be employed. So, a good part of the unemployment problem could be solved if defense spending were radically cut and the savings spent on domestic needs. Further, more of the money would stay in the US.
When we have to turn off streetlights, cut back on police, gut local school staffs, we are, as Krugman points out, screeching in reverse. Our nation will be the poorer for all these austerities.
Growing debt could conceivably become a problem at some point, although right now, US government bonds still sell easily at extremely low interest rates. So, as Krugman--and I in my earlier blog--have pointed out, now is not the time to be worrying about high deficits; we need to really stimulate the economy, not just stabilize it and say the job is done.
But, the huge amount of money going to defense could finance real domestic needs. If the world needs a policeman, let the world community step up; why should the US alone? Further, our world policeman role has had few positive effects in the last 50 years. We caused the Middle East and East Asian conflagrations by our interventions to install the Shah in Iran, to create Islamist opponents to leftist Afghans, and to buttress a corrupt regime in Vietnam.
Everyone (except a few large corporations) would have been a lot better off if we had kept our hands to ourselves. We meddle virtually everywhere, and create enemies even in Europe because of it.
So, the best way to stimulate the economy and answer the howls of the deficit hawks at the same time is to withdraw, not just from Iraq and Afghanistan, but from most of those 850 odd bases all over the world, and to stop equipping our military with high-priced toys that make them think they can overawe the world.
Looking at history, however, the above seems unlikely. It certainly didn't happen in Rome--until it was forced on her by defeats. That will happen to us, unless we withdraw on our own terms. Now.
Tuesday, August 10, 2010
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