The Principal Economic Consideration in Making National Security Policy.

by Robert A. Levine

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A discussion, addressed to political scientists, of only one of the economic considerations suggested by the title --the supply of funds for national security. The classical economic model provides that any increase in one segment of the economy (defense funds, for instance) requires compensatory decrease in another or an increase in taxes. The Keynesian model provides that in a period of unemployment no such compensation is needed. The Keynesian model is closer to reality, but enough individuals in power support the classical model that this compensatory decrease does occur. The paper poses a series of questions such as "How possible might it be to move toward the...Keynesian model through political education and/or pressure?" Answers require the techniques of the social scientist.

This report is part of the RAND Corporation paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

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