Increased security costs result in an artificially higher value for goods and services that have not themselves changed or improved, but which cost consumers more.
This formula injects a false boost to US GDP because goods and services are more expensive, without actually being higher quality, and despite the fact that security procedures have made production less efficient.
So, GDP increases while real productivity either remains the same or declines. Because most security measures are actually undertaken by the government, and funded by tax dollars, the increased cost of goods and services is not due to increased expenditure by companies; that means, essentially, that companies can charge more for inefficient production blamed on intensified security procedures.
It amounts to a subsidy to enable inefficient production based on the premise that the inefficiency is imposed necessarily by the government for security purposes.
This is state intervention to ensure profitability of corporations, insuring them against the financial loss of declining productivity, underwritten by taxpayers.
Homeland Security is an extremely useful component for the Neoliberal definition of economic recovery.