The alliance has created economic growth, peace and stability.
America’s relationship with Europe is undergoing a potentially profound reexamination. Whether and how the transatlantic bond — especially America’s commitment to NATO — will endure has become an open question.
To some degree, reassessment makes sense. The NATO agreement was penned over 75 years ago and most Americans alive today don’t know what led President Harry S. Truman to add his signature.
Nonetheless, the rationale for continued U.S. commitment to NATO is as rock solid today as it was in 1949. The reasons are varied, but the most important is one that’s not normally associated with the alliance: economic well-being.
There are three reasons why NATO matters to Americans. First and foremost, if you care about having a job, you should care about NATO’s durability. As all economists, bankers and businesspeople know, capital flees instability. Conflict tends to throttle economic growth in the countries and regions immediately involved.
For over 75 years, NATO has served to maintain security and stability across Europe, which was and remains our most important trade and investment relationship. Today, roughly one quarter of all U.S. exports and imports are with Europe, more than with Canada, Mexico or China. Nearly 2.6 million U.S. jobs are directly tied to trade and investment with Europe (269,000 of which are in Texas) versus around 900,000 with regard to China. In terms of U.S. debt, Europeans hold twice as much as China. In sum, our economy is inextricably linked with that of Europe.