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Economic impact of US foregin policy

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    How does our foreign policy affect our economic situation at home?

  • Duration 3:53
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Let's go back let's go to LAS -- seeing now Christian weighting is with this right now former State Department officials senior advisor.

And principle -- DC international advisory Christian they should be less.

Tracy is going to be here -- there are immune I'm printing here actually his name is not a lot about China and effects of China.

We've spent a lot of time talking about art of foreign dependency on oil.

And what it does for the United States and so I would love for you to give us like a big picture of how you feel.

Our foreign policy is affecting our economic situation here at home.

Which -- I think the big picture is that there is a big nexus between foreign affairs and how America's perceived in the world and how our economy is doing especially the trade part of the economy and that's part that creates a lot of jobs when times are good.

Bottom line weaknesses and just provocative in risky and a security sense it's also.

Detrimental in an economic sense if America's perceived to be in decline if we're perceived to be.

Withdrawing from the world.

Then frankly that is -- not just here but buying companies and governments abroad some governments are less interest in negotiating free trade agreements and looking for ways trade with the US.

And companies again whether the perception of American Klein is real or not.

If there is that perception they're just gonna devote less effort to finding vendors in the US people here -- companies here from whom they can buy.

Goods and services and also less interest in and exporting goods here -- so.

You know these -- there's a big crossover I'd say between foreign affairs our national security and economics thank -- -- You -- you're seeing weakness is costs -- -- do you think we're perceived as weak.

I think increasingly we are -- look at the way our economy has been under President Obama of course.

Recent statistics out showing this continues to be -- very anemic recovery.

You know I think we're going through -- slow process here in the US of learning again.

The keynesian economics do not work we've -- now we have learned that lesson in late seventies which also incidentally was a period of perceived American -- came on the heels.

Although our loss in Vietnam and there were serious economic consequences contributed to inflation.

Economic Malays eccentric centrists -- going through that again.

-- -- have the president who dragged his feet for three years on free trade agreements with -- South Korea Panama Colombia all of these things add up I think.

Yeah well you write about that thank you it's an interesting points about the cost of our defense the expense of the military people -- well.

The Democrats often like to say that -- a -- -- -- Iraq and Afghanistan have cost is an exorbitant amount of money.

But we're saying is this really only 20% of the federal budget.

That's right and if you look at the cost of the Iraq War which President Obama has repeatedly said.

Has contributed to our economic decline is is the main primary reason of our budget deficit it just isn't so the costs of those wars was is now agreed to be about.

800 billion dollars that the financial cost.

Of the that was over a decade where the government spent a -- -- 25 trillion dollars 800 billion out of 25 trillion that's about 3%.

We spend less than a quarter less than a fifth on our military now even though -- military are defending America's the first reason for having a federal government in the first place.

In another -- if you look at the percentage of our GDP that we commit to the military were headed back rapidly with this last round of cuts that President Obama has announced plus the sham super committee fiasco ex defense sequestration.

Heading back to 3.5 3% of our GDP which is where -- were frankly before 9/11 the only other times we've been.

In that low of a percentage of GDP was right after World War II are taken advantage of peace in a draw down.

Right after Vietnam and these are -- this -- what each one of those periods was followed by some extreme risk abroad coming coming real -- usually --

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