In February 2009, the head of U.S. intelligence - Dennis Blair - said that
the global financial crisis was the largest threat to America's
national security. All of America's intelligence agencies apparently agreed. The same month, the chairman of the Joint Chiefs of Staff - Admiral Mullen - also agreed. Now, Mullen is focusing on a specific economic threat. Specifically, Mullen is focusing on the debt:
national debt is the single biggest threat to national security,
according to Adm. Mike Mullen, chairman of the Joint Chiefs of Staff.
Tax payers will be paying around $600 billion in interest on the
national debt by 2012, the chairman told students and local leaders in
Detroit. “That’s one year’s worth of defense budget,” he said, adding that the Pentagon needs to cut back on spending.
But at least
war is good for the economy, right? At least spending on defense will
help the economy recover and climb out of this pit of debt. no? Actually, no.
Nobel-prize winning economist Joseph Stiglitz has said that war can be very bad for the economy. For example, in 2003, Stiglitz wrote:
is widely thought to be linked to economic good times. The second world
war is often said to have brought the world out of depression, and war
has since enhanced its reputation as a spur to economic growth. Some
even suggest that capitalism needs wars, that without them, recession
would always lurk on the horizon.
Today, we know that this is nonsense. The 1990s boom showed that peace
is economically far better than war. The Gulf war of 1991 demonstrated
that wars can actually be bad for an economy.
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