That's the question Christopher Fettweis asks about our expenditures on defense. Although it doesn't seem that way to me, he argues the point that "the the incidence and intensity of all kinds of wars – interstate, civil, ethnic conflicts, etc. – are at historically low levels, and still declining". He feels that war is disappearing.
As a counter to my sense that things have gotten worse, Fettweis asserts "although it may seem counterintuitive, given how much attention is paid to Iraq, Afghanistan, Georgia and al Qaeda, a far greater percentage of the world’s population lives in societies at peace than at any time in world history."
While I can't fully agree with him as to the world moving towards peace, he is certainly correct in asking what benefits we get from our budget-killing investment in arms.
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