Terrorism is a simple military tactic; so simple that, as we have seen, any single sociopathic shut-in can use it to throw a world power into a tizzy. That's the point, to demoralize the enemy and force them into irrational behavior. The goal isn't to kill lots of people, but to scare the shit out of them (though granted, the higher the body count, the more fear that tends to come of it)
By engaging in wild, over-the-top, irrational responses, victory is granted to the perpetrators. Military responses are, in fact, wild, over-the-top, and irrational actions; militaries are built to fight other militaries, not look for rogues in shacks and caves. All that happens with a military response is a depletion of the treasury, destruction of diplomatic goodwill, and of course the grinding attrition against that military and its families.
The way to "combat" terrorism is primarily to end the cause. Terrorists are not wall-eyed crazypeople with no sense in their heads who "hate us for our freedoms," or "because their caveman religion demands it." They are thinking people, who have a cause, who have goals and agendas, who have reasons for what they do. And sometimes these reasons are even legitimate ones, even if the actions undertaken for it are not. Understanding where these people are coming from is integral to halting them; either by acquiescing (I'm sorry, Reagan can kiss my ass, negotiation with terrorists is a valid response) or by otherwise undermining their particular cause. This understanding can further fuel preventative policework to stymie attacks.
Importantly? Media sensationalism needs to end. The hyperbolic echo chamber provided by competing 24-7 "news outlets" just extends the reach and impact of the initial act of terrorism.
"Remain calm and carry on" is the essence of combating terrorism, and by pairing that with an active effort to investigate and deal with the causes (again, "remaining calm" - describing your enemy as an irrational mindless animal is an expression of irrationality on your part) you can successfully "fight terrorism."
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