Macbeth wrote:
Our entire quality of life relies on the system that exist now. The government not protecting its business interest isn't going to help our standard of living. Things will especially be harder for the average person if the government stops providing services for its people like you dream about.
No it doesn't. We don't have an economy built on resource extraction and trading. We have an economy built for the most part on services and trade. Trade, by definition, is mutually beneficial. We import good from China, they in turn import the raw materials from places like Australia, and they both use that money to buy services from us. The world market is globalized. It's not dependent on our navy to protect trade routes, every country we trade with has incentives to keep those trade routes open themselves. Your assumptions are based on antiquated mercantilist economic philosophy which defines wealth as the ability to pile up as much gold as possible in the nations coffers. Other buzzwords used by mercantilists are self-sufficiency (i.e. Obama's obsession with energy independence or the BNP's obsession with food independence), tariffs, balance of trade, etc.
The world is now globalized. There is no going back. We've entered the phase where comparative advantage rules all, not military might. Japan rose to dominance because they could produce quality goods cheaper than we could here in the States. When wages rose too high, they were supplanted by China (and Japan has now been mired in a permanent recession for almost twenty years now). China became the leading producer of goods because their wages were so low compared to those found here. Now that China has lost its wage advantage (wages have quadrupled in China over the past decade), companies will start moving industry back here, or to Mexico. It's cyclical. As wages rise in one place, industry will move out, when they lower once again in comparison, they will return. Why? Because when you pile up all that money in your economy, prices will rise, wages will rise, and you lose your comparative advantage.
Our military is a net drain on our economy, not an aid to gaining comparative advantage. It doesn't put food on our tables, or help us extract resources from far away lands, it simply acts as a wealth transfer device for the defense industry. Money is taken out of other, productive, parts of the economy and handed to Halliburton, and General Dynamics, and Raytheon, and Lockheed-Martin. Why should every other company have money taken off of their balance sheets and given to those companies instead? Because that's all you really get when you advocate a large military. Oh, and the sadistic bullies we elect to high office have a toy to play with when they're feeling ornery.
Last edited by Jay (2012-12-09 13:28:55)