The US Defense Economy


Book Description

The United States defence economy is remarkable for a number of reasons - including sheer size. It receives a significant (albeit decreasing) share of GDP and has a significant international footprint. Its purpose is to provide the resources for national defence - against a set of complex and capable adversaries. The main players in the defence economy are households, and the Federal Government. The associated interactions determine the resources provided for national defence and their allocation among various defence needs. This Element focuses primarily on interactions between government and industrial suppliers within the institutional peculiarities of the defence marketplace. This includes the developments that have determined the course of defence industry consolidation post-Cold War. The authors also highlight the persistent gap between resources available for defence and the means to execute the National Security Strategy. Finally, they offer some tentative thoughts regarding developments likely to shape the defence economy's future.




Defence Economics


Book Description

This Element introduces students, policy-makers, politicians, governments and business-people to this new discipline within economics. It presents the recent history of the subject and its range of coverage. Traditional topics covered include models of arms races, alliances, procurement and contracting, as well as personnel policies, industrial policies and disarmament. Newer areas covered include terrorism and the economics of war and conflict. A non-technical approach is used and the material will be accessible to both economists and general readers.




Adjustments of the U.S. Economy to Reductions in Military Spending


Book Description

The purpose of the study is to review the likely impact of reduced military expenditures on the economy of the United States and to identify some of the more pressing problems which may be encountered in the shift of resources from military to non-military uses. (Author).




The $650 Billion Bargain


Book Description

U.S. defense spending isn’t excessive and, in fact, should continue to grow because it’s both affordable and necessary in today's challenging world. The United States spends a lot of money on defense—$607 billion in the current fiscal year. But Brookings national security scholar Michael O'Hanlon argues that is roughly the right amount given the overall size of the national economy and continuing U.S. responsibilities around the world. If anything, he says spending should increase modestly under the next president, remaining near 3 percent of gross domestic product. Recommendations in this book differ from the president's budget plan in two key ways. First, the author sees a mismatch in the Pentagon’s current plans between ends and means. The country needs to spend enough money to carry out its military missions and commitments. Second, O'Hanlon recommends dropping a plan to cut the size of the Army from the current 475,000 active-duty soldiers to 450,000. The U.S. national defense budget is entirely affordable—relative to the size of the economy, relative to past levels of effort by this country in the national security domain, and relative, especially, to the costs of failing to uphold a stable international order. Even at a modestly higher price, it will be the best $650 billion bargain going, and a worthy investment in this country’s security and its long-term national power.




The Political Economy Of National Defense


Book Description

This timely and wide-ranging study covers both the economic and the political aspects of defense spending—first by providing a theoretical framework and then by explaining, in a political economy context, the results of decisions to allocate scarce resources to defense. In doing so, the authors provide a comprehensive picture of the interaction between defense spending and the economic and political structure of the United States, complementing their exploration of topical concerns such as SDI with analysis of long-term trends and issues of timeless importance in the defense debate. Because of the politicizing of defense planning and procurement, there have been few significant applications of optimization techniques to high-level defense issues over the past decade. As a result, there has been a rapid decline in the importance of those techniques—historically the focus of books on defense economics. Like its predecessors, this book presents optimization techniques applicable to a wide variety of defense problems, but it also illustrates what happens in actual practice and why defense decisions are often not economically efficient. The authors discuss alternatives for cases when political constraints make efficient solutions unlikely and explore changes in the defense establishment and political structures that would make economically efficient resource allocations a reality.




The Political Economy of Military Spending in the United States


Book Description

Leading scholars examine the links between domestic politics, defense spending and the economics of the US defense industry.




Economic Security: Neglected Dimension of National Security ?


Book Description

On August 24-25, 2010, the National Defense University held a conference titled “Economic Security: Neglected Dimension of National Security?” to explore the economic element of national power. This special collection of selected papers from the conference represents the view of several keynote speakers and participants in six panel discussions. It explores the complexity surrounding this subject and examines the major elements that, interacting as a system, define the economic component of national security.