As the American economy digs out from the debris of the Great Recession triggered by the collapse of the housing bubble, we should think about what could happen about another bubble that invisibly chugs through the American economy.
I refer to our bloated defense spending.
The United States spends more for its arsenal than any other 10 countries combined. According to the Stockholm International Peace Research Institute, the U.S. accounts for more than 40 percent of the world’s total military spending. China is in second place, at a relatively puny 5.8 percent.
If the U.S. defense spending bubble were ever to deflate, domestic job losses would be catastrophic, a stunning fact that raises the question of whether we can ever afford peace.