War is only one small factor. The real toxic ones are Federal Reserve and welfare programs like SS, Medicare / Medicaid, the on going health care bill and so on. US will be in instant recovery mode if they cut them all.
Price of every product will skyrocket in that case b/c of such overheads as corp tax, social security, regulation fees, minimum wage, health care cost, unions, cap & trade, environmental charges ... Americans are jobless b/c they themselves drive jobs out of US w/ all the crap above.