I am speaking as an American, about the USA.
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[1] Would less or more people die?
Fewer Americans would die, most likely, more people would die globally, at least until the power vacuum was filled.
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[2] Would we be safer or less safe?
We, as in Americans, would be safer provided some spending were left for vital defense and nuclear counter-strike capacity. The world at large might be less safe, certainly some specific peoples would be far less safe, until the power vacuum was filled.
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[2] Would it be a more effective way of spending *defence* money (ie - would the *defence* outcomes be BETTER spent on aid than weaponry etc.?)?
In some cases, absolutely. There is a great deal of bloat of waste spending in the US defense budget. This waste/bloat doesnt actually aid in the defense of the nation, thus it purely a matter of waste. Any spending that does not lead to waste would clearly be a better use of those funds.
It should be noted however, social spending does not mean that funds will not be wasted.
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[3] Would it solve or contribute to any major problems, if so which?
It would certainly solve certain issues in the USA, of course it would also contribute to certain problems in the USA as well. Certainly some social issues could be dealt with, education and health care for examples. However, the spoilt Westerner syndrome may very well be multiplied, furthermore, the illegal immigration issue that currently faces the USA would be ten fold.
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[4] Would the world be a better place?
I suppose that depends on ones opinion of better.
If by better one simply means 'without US influence' then yes.
If by better one means 'without strife/economic disparity' then I would say no.
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[5] Over time, would such a shift decrease or increase the 'need' to tax people highly? ie. would it mean that future budgets would be higher or lower?
I have no idea. I don't believe that social spending would really make society more efficient then military spending. It just seems to me that we are choosing two different cash sinks.
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[6] Given all this, is it (a) good idea (b) bad idea (c) somewhere in between?
Absolutely A, provided that the US retain funds for vital defense and nuclear-strike capacity.
As an American isolationalist there is nothing I would support more then simply cutting ourselves off from the rest of the world militarily and letting the world do whatever it wants to do with its new found freedoms. Provided of course, that the worlds understands that the US is not to be challenged within US borders.
Seeing as how the power projection of the USA would be greatly diminished, which would take away the threat of the US military, I would support an increase in ICBM production, an end to all international nuclear treaties and the arming of space with nuclear ballistic missiles.
The US must then take control of space, insure that no other nation may arm in space and then live safetly under our nuclear umbrella of armeggedon.
Of course, that would all take security spending ... however it would be a greatly decreased amount of spending then defense spending would cost.
Those who beat their swords into plowshares wind up the slaves of those who forged new swords.