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Re:United States loses AAA credit rating from S&P by redthrowaway on Saturday August 06, 2011 @02:18AM (#2853231)
The only problem with slashing military spending and ending foreign interventions is that it has been just that spending, and those interventions, that have made the US the economic powerhouse it is today. The US has a history, stretching back well over a century, of launching military campaigns to support corporate interests. Be it South America, the Middle East, or Asia, the US has invaded countries and toppled governments time and again in support of its economic goals. Now, I think this is reprehensible, but I also wouldn't be so naive as to say that the path to economic recovery lies in an end to military adventurism. The US is rich for the same reason Rome, England, and Spain were: they won their riches at the the end of a sword.

The American military budget is clearly unsustainable, but that doesn't mean an end to foreign wars is in their economic interest. It's no coincidence that the US has been both the most prosperous nation on Earth, as well as the most aggressive, for nearly 200 years.

Take a look at the history of US military actions on Wikipedia [1], and see how many times the phrase "protected American interests/property" is mentioned.

[1] http://en.wikipedia.org/wiki/Timeline_of_United_States_milit...

Re:United States loses AAA credit rating from S&P by jaredmck on Saturday August 06, 2011 @03:49AM (#2853358)
Isn't the primary reason the US is rich due to being located far from the battlefields in WW1&2, and after each of these wars an influx of immigration out of Europe into the newly stimulated American industrial economy? We've essentially been riding the demographic wave up the hill since, and yet few in govt/media seem to really take this into account when planning for long-term spending and economic projections. Something has to give eventually, the question is when this long-run day of reckoning will finally come- although to quote Keynes (IMO the only thing he's been proven right about thus far), in the long run, we're all dead.
Re:United States loses AAA credit rating from S&P by redthrowaway on Saturday August 06, 2011 @04:02AM (#2853372)
That's been important, but it's not the only factor. Yes, intactness of American industry after WWI&II was key. It certainly gave the US a big leg up in post-war industry and rebuilding. Imigration was a huge driver of the economy when it came primarily from Europe, and professionals were over-represented. Demographics can't be ignored, but neither can they tell the whole picture.

I'm not trying to insinuate that the US is rich only because it has invaded countries and overthrown governments when doing so suited its economic interests, only that that behaviour has played a large role in its success. As such, the commonly-held libertarian view that an end to military adventurism will be a boon for the US economy strikes me as naive. I still think it's the right thing to do, but I don't argue for it on economic grounds.

Re:United States loses AAA credit rating from S&P by stcredzero on Saturday August 06, 2011 @01:17PM (#2854350)
As such, the commonly-held libertarian view that an end to military adventurism will be a boon for the US economy strikes me as naive.

Driving economic activity by having the military act as a major consumer is really just running on a treadmill. We need to find an outlet which will lead to increases in economic activity. There is a huge investment hurdle involved, but space exploration and colonization could fit the bill. Once there is a significant human presence in space beyond low earth orbit, there will be tremendous economic growth. The major problem is that hundreds of billions of dollars of investment would be required to jump start it.

Re:United States loses AAA credit rating from S&P by redthrowaway on Saturday August 06, 2011 @03:31PM (#2854696)
>Driving economic activity by having the military act as a major consumer is really just running on a treadmill.

I think you're missing my point. It's not that military spending drives manufacturing, service, and R&D industries (although it does), it's that direct military action has often been, and is often used to promote US economic interests. See the military's actions in Latin America in support of United Fruit, military support of right-wing (pro-US and pro-business) dictators everywhere, or the military-political interventions in the Middle East in support of energy interests.

My contention is not simply that making tanks is an economic activity that many people benefit from, but that those tanks are used to assert and defend economic dominance, which has a massive spillover effect for other industries.

Re:United States loses AAA credit rating from S&P by stcredzero on Saturday August 06, 2011 @04:36PM (#2854862)
that those tanks are used to assert and defend economic dominance

And the need for the assertion of force to defend economic dominance in turn cements the need for the military machine and perpetuates the military-industrial complex. We are essentially in agreement. I think it would be better for the US to concentrate on economic dominance through sheer commercial and industrial awesomeness combined with forward-thinking research and exploration.

Re:United States loses AAA credit rating from S&P by redthrowaway on Saturday August 06, 2011 @07:32PM (#2855178)
In that, we are in perctect agreement. With leadership and sane economic policy, the US could still be an economic juggernaut without the need for a military that could take out any two nations on earth simultaneously. It can still be by far the most powerful, without needing to cost as much as the next 8 combined.
Re:United States loses AAA credit rating from S&P by russell on Saturday August 06, 2011 @03:48PM (#2854735)
While I'm an avid supporter of space exploration, it is not the cure for our economic stagnation. Much better are infrastructure improvements: replacing aging bridges, high speed rail, high speed communications, electrical transmission lines. Better to support solar, wind and nuclear energy than to wage wars in the middle east.
Re:United States loses AAA credit rating from S&P by stcredzero on Saturday August 06, 2011 @04:39PM (#2854869)
A concerted national effort on removing our dependence on foreign energy resources would be a beneficial way to target our resources for the next 30 years or so.

You missed my point. Sure, space exploration won't cure our economic stagnation in the 1 to 30 years time frame. But it will decide if we are a first, second, or third-rate power in the next 100 years.

Re:United States loses AAA credit rating from S&P by nickik on Sunday August 07, 2011 @08:00AM (#2856454)
I think it will take more more then 100 years but I agree generaly agreed.
Re:United States loses AAA credit rating from S&P by com on Saturday August 06, 2011 @04:05AM (#2853377)
The US demographic wave hasn't stopped; that's why, from at least a European long-term investor perspective, the US is still a good bet compared to countries that have already peaked: Italy, Japan etc.

There are many paths to wealth. Germany is rich because of - in part - the almost total rebuilding of a ruined nation and the creation of a pretty effective post-war consensus in West Germany. In fact, I'd argue that an important part of the US's success were also an effective post-war consensus (different, but also hugely effective).

Re:United States loses AAA credit rating from S&P by forgottenpaswrd on Saturday August 06, 2011 @07:23AM (#2853618)
"The US is rich for the same reason Rome, England, and Spain were"

Not really, have you been in England, Rome or Spain?

Rome legionaries were used to make roads and bridges and mining 90%of their time. If I show you the extensions of the land they "washed" to get mineral you won't believe it(you can see it using google earth, e.g in the north of spain, look for grooves around mountains).

England made itself rich because of commerce, like Spain(they took the risk to travel the ocean and won the first mover advantage, and when the rest of the world notice, it was late for them). That was what made them rich, not the military.

The US is rich because... IT IS RICH. It is a huge place with huge resources for a small population.

The US became the more powerful country on earth because Japan and Europe totally destroyed itself by the military in the WWII. The US waited for them to auto destroy, and then entered the world and finished it with all their cities untouched, 90% of the world gold reserves and creditor to them all, being able to force the dollar as world currency and english the official language of aviation, and naval commerce. Every body lost their colonies and US got them all(they just wanted the commerce and influence without having to build roads like English or Portuguese did in Africa).

Yes, it was a coincidence(being far away), no, US was not the most prosperous nation on Earth 200 years ago. If you believe in that, please study some real history. US was not the technical leader that is today thanks to all the Europeans that went there thanks to Hitler(militarization and economic totalitarism), the Edisons, the von Brauns and von Newmans.

Thomas Jefferson and other of the US founding fathers thought a permanent military and central banking would ruin the country because military people do nothing while things work at it should they need to create new enemies so they can justify their existence.

I had family members that were in Soviet Russia when something like 95% engineers were used in the war industry, while people needed cars, washing and sewer machines. This was not wealth for Russia, that was a bully inside. Mass media brainwashed them all them about how cool they were being able to destroy anybody else.(This strange pride remains today)

Today 60% of the engineering in US goes to war efforts, 50% of all their money to the military, so they can kill better, while the rest of the world expends significantly less.

They will talk about GPS, but the question is if this money expended in real economy would be able to create as much as the military does?

Re:United States loses AAA credit rating from S&P by stcredzero on Saturday August 06, 2011 @01:08PM (#2854322)
Thomas Jefferson and other of the US founding fathers thought a permanent military and central banking would ruin the country because military people do nothing while things work at it should they need to create new enemies so they can justify their existence.

The rise of a professional military is often cited in as a major factor in the decline of the Roman Empire. Military Conquest drove economic gain, which provided wealth, which in turn motivated greed and more conquest.

Nowadays, we don't need conquest so much as the economic activity motivated by a military, but the same cycle is there, minus the emphasis on holding territories.

It's curious to think about: The reason a state needs particular access to petroleum, is to support a large mechanized military of the kind first realized on a huge scale in WWII. This petroleum resource now creates a US dependence on other nations, which in turn justifies a large military. While a lot of other things we do need oil, there are alternatives which could offset a lot of those needs. None of those is viable for a mechanized military, however.

Re:United States loses AAA credit rating from S&P by salemh on Sunday August 07, 2011 @12:01AM (#2855707)
Fantastic podcast by history-phile Dan Carlin (also a political journalist, who does a fine job bashing both parties in reference to historical context, "Common Sense, with Dan Carlin" podcast)

http://www.dancarlin.com/disp.php/hh Death Throes of the Republic: The Fall of Rome

You will find so much fantastic similarities to our own downward spiral, re: military, political class of protecting special interests, where near the decline, voting blocks were outright purchased, etc. He brings together several historians, records, etc.

The entire series is wonderful, and you WILL find yourself spending way too much time on them :)

Re:United States loses AAA credit rating from S&P by encoderer on Saturday August 06, 2011 @08:47AM (#2853718)
Where do you think the money goes?

Military spending is still government spending. It's going to contractors, vendors and soldiers. They are, respectively: making jobs and selling to everybody (not just the gov't), and buying cars and houses.

Re:United States loses AAA credit rating from S&P by natnat on Saturday August 06, 2011 @11:43AM (#2854103)
When the government spends a million dollars building a bridge, it creates a bunch of jobs because people need to design the bridge, extract the raw materials for the bridge, and build the bridge.

When the government spends a million dollars building a bomb, it also creates a bunch of jobs for the same reason.

The thing is, a bridge gets you a useful public resource that makes lost of people's lives better and encourages economic growth by making trade easier. A bomb blows up, kills some people, and disappears.

Re:United States loses AAA credit rating from S&P by encoderer on Sunday August 07, 2011 @09:51AM (#2856590)
Absolutely, no question. It's the same argument that econonmists make against acceptance of a so-called "service based economy" -- if I pay you $200,000 to build me a house, you've got $200,000 and I've got a house worth $200,000.

If I pay you $100 to clean my house, you've got $100, and all I've got is a clean house. Nice, but there's no market value. There's no multiplier effect.

But there is SOME utility to the gov't injecting capital in the form of military spending. As I mentioned in the comment below yours, the most extreme example of that is WWII, which finally and permanently ended the Great Depression, in a way that the WPA/etc building bridges just did not.

Re:United States loses AAA credit rating from S&P by stcredzero on Saturday August 06, 2011 @12:55PM (#2854282)
Sounds like something straight out of Orwell's 1984? The economy is based on ridiculous spending my the military, which enables companies to write paychecks to facilitate consumer spending at home. So basically, our way of life depends on finding excuses to go off and kill people, which in turn justifies our military-industrial complex.
Re:United States loses AAA credit rating from S&P by encoderer on Sunday August 07, 2011 @09:48AM (#2856587)
No, of course not, and that's the most extreme possible way to take my comments.

But remember that what did more than anything to cure this county of the great depression was the massive Keynesian capital injection that we called WWII.

Re:United States loses AAA credit rating from S&P by dereg on Saturday August 06, 2011 @03:44AM (#2853349)
You're making a spurious correlation. If your assertion was correct, the French, British, Danish, Portuguese, and Spanish, et al.--the great colonial powers--should be stronger economies than the United States.

http://qed.princeton.edu/getfile.php?f=European_Colonialism_...

In conclusion, you've made a spurious correlation.

Re:United States loses AAA credit rating from S&P by redthrowaway on Saturday August 06, 2011 @04:04AM (#2853374)
They were stronger. Much stronger. They collapsed for varied reasons, but suffice to say if the British Empire was as big today as it was in its heyday, it would be a larger economy than the US.

Also, no need to say "in conclusion" when the sum total of your argument is a single sentence.

Re:United States loses AAA credit rating from S&P by petercooper on Saturday August 06, 2011 @06:31AM (#2853571)
Yeah. Despite Britain's significant fall from grace over the past 100 years, its wealth per capita is still not significantly below that of the US, even now. The US has nothing on how onerous and profiteering the British empire was.