If online comments and e-mails from friends are any indication, the overwhelming feeling about the American debt crisis here in Europe is that if Barack Obama is now in a position of having to raise the debt ceiling or face default, the crisis can only be traced back to George W. Bush.
Europeans are, in part, blaming Bush's post-9/11 military funding -- yet somehow the phrase "overstretched Greek army" doesn't exist to explain how that country managed to economically implode.
While there's little economic return in the limited act of paying for a soldier to travel to Afghanistan or Iraq and use the finest technological equipment to shoot a terrorist in the face, there can be great economic return on the overall outcome of war. World War II cost the United States more than $900 billion in 1945, yet the surge in military spending led to an economic boom. The Marshall Plan to rebuild Europe increased America's presence and economic/trade opportunities in the region. The increased presence of military bases caused trade to build up around them.
Likewise, after a period of Carter-era military neglect and economic stagnation, the Reagan era saw a Cold War military buildup and an increase in economic growth. Who can argue that the fall of the Berlin Wall wasn't beneficial for American business and trade?
Wars are only bad for the economy if the person in charge has no idea how to parlay it into opportunity. Bush had a historical sense of what military action in the Middle East would mean. As he explained in an interview late last year, his father and the father of Japan's leader were once signing up to fight each other, yet their sons later ended up working together to keep the peace. It's not hard to believe that Bush could envision the "long game," but it's tougher to imagine the current White House occupant seeing around his Nobel Peace Prize for Being a Cool Dude to the lasting peace, prosperity and stability achieved through military victory.
Industry builds up around military efforts. Someone has to make the drones, the guns and the missiles. It's probably not the most politically correct thing to suggest, but there's much more of a long-term financial return involved in a terrorist being blown up than there is in blowing stimulus funds to pay someone to plug a pothole in a road.
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