Yes it can imagine there is no US mil and Saddam Hussein actually took over Quatar Kuweit and UAE and Saudi Arabia and than made a deal with Russia. Whant to calculate effects on US ecomony?
We did prevent that scenario. The discussion did shift from "having the worlds top military" to "imagine there is no US military".
I don't advocate US military disarmament or blind pacifism, but there is some room for enhancing efficiency and still maintaining the world's top military (and economy).
I think I worded the example poorly but my understanding is that there is a mil. doctrine of what kind of resources US mil. needs to be able to have X silm. engagements it's hard to say how much you can scale back and keep the same capability. I would imagine that it includes handling Russia and China at the same time for example.