This paper discusses the connection between macroeconomics and the military.
Written in 2005; 900 words; 3 sources; $ 35.95
Paper Summary:
This paper suggests ways in which military spending is affected by the economy and ways in which military spending affects the economy. The author notes that the military, just as business, needs to seek a proper balance between income and expenditures. The paper relates that the majority of military expenditures go for personnel and equipment.
From the Paper:
"The economics of the military on one level is the same as for any business, with a need for a proper balance between income and expenditures, with the latter going largely for personnel and equipment. One difference is that the military can always ask for increased funding and will usually get it from Congress, while a business can only increase sales, get a loan, or improve the bottom line by reducing expenditures. Both are also affected by macroeconomic forces largely out of their control, but the effect on the military is not always in keeping with the strict rise and fall of the macro-economy. Changes in the macro-economy can affect military spending in the same way they affect other forms of public spending, by adding to or reducing the revenue collected through taxes and so adding to or reducing the amount of money to be spent."
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