What I'm saying is that my look at the figures wasn't dumb at all. The 'smaller yet still big pie' that you're talking about as the American military expenditures isn't as big as you're making it out to be. It's 3.3% of the GDP. The economic figures would not work out. $450 billion a year, the complete estimated military spending, maybe if completely put into the education system, would be enough to fix it all. That's a big maybe. We're talking about the average state getting roughly 10 billion a year to support all their educational institutions, from preschool to grad school. Now, as thin as that's spread now, that is still HEAVILY supplemented by local taxes in various districts around the country to keep the schools working, counted completely from a different source than the ~$9Billion.
To save a lot of math, and a lot of hot air, the simple point that I'm going to make is this: universal higher education would create more problems than it'd cause. Taxes have to be hiked, and most people don't have them to begin with. It'd create incredible parity for jobs in an already unsubstantial job market (for the most part.) So instead of HELPING the economy, you'll be giving more people more education through higher taxes which you won't be able to sustain because there aren't enough higher education jobs right now. Then, even if you did have the jobs, you're neglecting the fact that all businesses, having such a huge market of employees, would not be required to pay the employees what we're used to now, unless you introduce new legislation (which is a whole different mess).
And this is also ignoring all the haughty, capitalist, conservative bullshit about how having class warfare stimulates poor people to try harder at life. Believe me-- I'm a college student now, and I'm going to be leaving university roughly $50,000 in debt, unless I go to graduate school or anything else. You don't have to preach to me about how great universally paid education would be. But you gotta check all angles on things like this.
Not to mention the fact that the military budget would be cut. God knows we don't need to be invading anyone right now. But if you cut the budget too much, while revolutionizing your society in vast amounts (creating more goods, tangible and intangible), you're only leaving yourself open to attack by another power who wants to take by force what we work for. Sure, we may be beyond that whole 'international domination' thing, but if we're not then we could be in a world of trouble.
And don't even get me started on the terrorism security problems relating to a dropped military budget. Just look at Russia for a worst-case scenario (gangs seizing nuclear warheads to sell on the black market).