I plead guilty of polemic exaggeration with the "eating more cake". I would guess you'd use that money better. Still:
Yeah... we all particularly know and like our friends. If the choice were "use the cash for them" or "put it in a public square so anyone can grab some", I wouldn't go for the latter since I might be funding folks I despise. Similarly, if the 'peace' choice were only for say 10 people, it wouldn't be worth it. But world peace is a different matter - there you can help way, way more people. With things even more serious than debt or lack of college access - holding on to health, life, property...I'm not trying to be the measure of everything. I'm not saying "If you had $1,000,000 you should give it to me and my friends". I'm saying that I'd spend that money on my friends because I know and like them.
But whether the latter is true depends on the interpretation of what the question promises; won't go into that again.
I included "even your friends and yourself" considering the more subtle and longer-scale economical and political effects of war. I'm not sure you are totally unaffected by war - but perhaps you are positively affected by it. I don't know how the cost/income balance of the US wars works out, but I reckon that balance isn't the same for every US citizen. It's also certainly hard to guess future costs and benefits.