The United States is the number one military power in the world. That will continue to be true for the foreseeable future, but all of our military and political power ultimately rests on a sound economy. We are the number one superpower in the world because we are the largest economy in the world.
Economic instability at home will eventually lead to political and military disengagement abroad. High unemployment, inflation, or stagnant wages means less money for the government to spread broad and political unpopularity for foreign adventures.
In my opinion, I think that our economy can either make or break foreign policy. While the American dollar is still a mainstay in the global market, our influence on foreign affairs remains strong. If this were to change, not only would we suffer as a society, we would also suffer in the global market.
I think that it does. You can't have a good, sound foreign policy that is well discussed if you're too busy worrying about domestic issues.
It also effects the way that the rest of the world looks at us. You can't be a leader when it comes to foreign affairs if you can't handle your own house. People are going to see the way your own country is running, and they are not going to want any of it, ultimately reducing the amount that they are going to listen to you.
A sound, stable American economy is the very hub of its ability to exert foreign influence. The American dollar still remains the main medium for foreign commerce. If this were to change because of American economic decline, American influence would drop dramatically. Our military is helpful but without a sound economy, military power is mostly just a paper tiger.