Lobotomizing the Defense Brain

Originally published in The Review of Austrian Economics

Economists model national defense as a pure public good optimally provided by a benevolent and omnipotent “defense brain” to maximize social welfare. Christopher Coyne discuss an alternative framework—the “individualistic view”—for analyzing defense provision and suggest it is superior for understanding reality.

Economists model national defense as a pure public good optimally provided by a benevolent and omnipotent “defense brain” to maximize social welfare. I critically consider five assumptions associated with this view: (1) that defense and security is a pure public good that must be provided by a national government, (2) that state-provided defense is always a “good” and never a “bad”, (3) that the state can provide defense in the optimal quantity and quality, (4) that state expenditures on defense are neutral with respect to private economic activity, and (5) that state-provided defense activities are neutral with respect to domestic political institutions. I discuss an alternative framework—the “individualistic view”—for analyzing defense provision and suggest it is superior for understanding reality. 

To speak with a scholar or learn more on this topic, visit our contact page.