I'd argue that a lot of defense spending has helped the private sector (GPS for example, oh an the Internet you are using.). Spending money on the military isn't always about spending money to kill people. Sometimes you want to save your own guys. I won't go into the minutia of that. You misspelled peace bomb...it's spelled peace bong. And for your point, I like things like the X Prize. I really do like the private sector rewarding innovation.