The U.S. emerged from the cold war as the only military and economic superpower and maintained that position throughout the 1990s while substantially reducing military spending and force levels. The peace dividend produced by the spending reductions contributed significantly to America’s sustained economic expansion by easing pressures on the federal budget, making possible lower interest rates, and fueling greater investment. Although it is arguable whether the best use was made of the resources that were freed, it is unquestionable that military cuts were a major cause of the record long recovery.

Foreign policy issues were mostly an afterthought during the 2000 presidential campaign, and they continue to take a back seat in President-elect George W. Bush’s discussions of the priorities of his incoming administration. But one critical foreign policy issue—U.S. nuclear weapons policy—demands immediate attention and debate. The Bush foreign policy team is quietly contemplating radical changes in U.S. strategy that could set off a global nuclear arms race that will make the U.S.-Soviet competition of the cold war period look tame by comparison.

Although we don’t yet know what a Bush cabinet will look like, the Pentagon will undoubtedly get a warm reception at the White House. In addition to whomever is selected as defense secretary, President Bush will be receiving advice from former Defense Secretary Dick Cheney, and it is clear that former Chairman of the Joint Chiefs of Staff General Colin Powell will have an important role in the administration, probably as secretary of state.