I was wondering this when I debated war with my brother who said, that at least war and tax money going to the us army is not wasted, since war is profitable.
But how is war profitable? The Iraq war cost 5 trillion dollars, which is more money than exists in the entire world. And the US military has an annual budget of 500 Billion, which is about switzerlands GPD.
So how can you possibly recuperate that much money? Because that is more money than oil could possibly be worth.
So how does the US military make its money back?
In: Economics
The US Military is a sink, but Team USA sees a profit from their activities.
After WWII, most of the first world was bled nearly to death, and most of the 2nd world was coming up into the first.
Instead of pouring billions into their defense budgets, they could instead sign up with the UN and Team USA would protect them along with our allies.
Now you have a world where the only military force of real consideration is the United States. There are others that could put up a fight, but that’s World War III: The End Times territory.
So if you’re a smaller power, and start getting shitty with your neighbors, or being neglectful in the terms of your trade agreements, the US will park [1000ft of Freedom](https://nationalinterest.org/sites/default/files/styles/desktop__1486_x_614/public/main_images/5526433794_35ff1d8459_o.jpg?itok=IApON6eT) in the middle of your biggest shipping lanes “for training” and wait for you to call the State Department.
Now, how is that profitable? That now means that every foreign government that relies on our “peacemaking” abilities has to consider the US’s feelings on every international deal they make. If we support it, they know the US Military will back their play. If we don’t, their “navy” of 12 dudes in a Vietnam Era-boat had better be able to handle it.
That means the US gets the right of first refusal in nearly every trade deal, and has a standing seat at every negotiation table. We can use our military to enforce (or not enforce) any treaties we see benefit from, and keep a soft pressure around the world.
If we were to dial back the spending and stop playing World Police, those smaller countries wouldn’t go building up their navy. Instead, they’d more likely find another big friend like China or Russia and start sliding favorable trade deals their way instead of ours.
Is it a net gain? Definitely debatable. But being the first country in every foreign leader’s mind, and the only guy with a gun in the room means we don’t have to find out.
Latest Answers