Journeys of Understanding / The Economics of Influence: A Geopolitical Look at U.S. Investments in Global Conflicts

Journeys of Understanding / The Economics of Influence: A Geopolitical Look at U.S. Investments in Global Conflicts

From an author’s perspective—particularly one steeped in themes of geopolitics and conflict like in A Line in the Sand—the intersections of economics, military might, and global hotspots offer a rich tableau. There’s no clearer example of this than the United States’ military investment in Israel. On paper, the billions of dollars allocated annually to Israel’s defense seem straightforward: an alliance grounded in shared strategic interests. But the economics behind this partnership tell a more nuanced story.

I was recently told, and I believe, approximately 50% of that military aid returns to the U.S., channeled back into the economy because Israel lacks the production lines to manufacture the advanced weaponry they need, like missiles. This creates a fascinating dynamic where aid serves a dual purpose: reinforcing an ally while simultaneously bolstering domestic industries. It’s not philanthropy; it’s strategic economics—a supply chain of influence and deterrence wrapped in an alliance. The same missiles that Israel uses to defend its borders fuel American jobs and innovation. It’s war economics with a touch of mutual dependency.

As I remind interviewers on podcasts: I am not a historian, I just love history. And when asked what I would do if I ran the State Department, I remind them that I don’t and won’t expect to anytime soon. That said, the coming years present a fascinating—and daunting—landscape for U.S. foreign policy. Three global hotspots will dominate headlines: the Middle East, Ukraine/Russia, and the South China Sea. Each offers unique challenges, but the underlying theme remains consistent—conflict, for better or worse, is an economic engine.

Middle East: The Eternal Tinderbox
Despite a short-lived focus shift during the U.S.’s pivot to Asia, the Middle East remains a powder keg. The Abraham Accords brought a fleeting sense of détente, but deep-seated rivalries—especially involving Iran—threaten the fragile alliances. And with new powers like China making economic inroads, the region has become a complex chessboard. U.S. influence here will depend not just on military aid but also on its ability to outmaneuver competitors in energy and infrastructure investment.

Ukraine and Russia: A Frozen Conflict in the Making
The war in Ukraine isn’t just about territory; it’s about the global balance of power. For the U.S., supporting Ukraine offers a relatively inexpensive way to weaken Russia militarily and economically. Yet, much like Israel, the flow of aid often circles back to domestic arms manufacturers. This modern-day lend-lease program has turned Eastern Europe into a proving ground for weapons technology. The real gamble is whether the U.S. can keep its NATO allies aligned in the face of war fatigue.

The South China Sea: The New Frontier
If the Middle East is the past and Ukraine is the present, the South China Sea is the future. Here, the U.S. faces its most formidable challenger: China. Unlike Russia, China’s ambitions are not only territorial but also economic. The Belt and Road Initiative extends Beijing’s influence across continents, creating a rival network of dependencies. The U.S. will need a mix of military presence, economic partnerships, and soft power to counterbalance this expansion.

From my author’s chair, these global hotspots feel like scenes from a larger story—the kind where alliances shift, power waxes and wanes, and the only certainty is uncertainty. In A Line in the Sand, characters navigate the complexities of conflict with ingenuity and grit. It’s not unlike the balancing act nations perform on the geopolitical stage.

I mentor two kids and several entrepreneurs. Similarities are coincidental.

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