He is referring to the bombing of Britain by Hitler's forces (also known as the Nazis). He was also said to have stated about this "It is not the size of the dog in the fight; but the size of the fight in the dog."
The cost of running such programs are way too expensive.
Explanation:
The success of the naval war with the Barbary pirates prepared the United States for a full-scale war with Tripoli to protect American shipping interests in the Mediterranean Sea.