Economics Semester Courses

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The Economics of National Security Strategy, supported by the spring term Industry Analytics, incorporates two key economic concepts. The first is that a strong economy promotes a rising standard of living, and is a fundamental objective of overall national strategy. This includes a high level of GDP per capita and a high level of GDP growth, and price and employment stability.

The second is that the economy supports the strategic goal of national security, as it provides the revenue and the industrial base (broadly defined) to resource its requirements. It is important for students to understand:

• The benefits and limits of competitive markets, how they allocate resources, and the shocks that disrupt them.
• The benefits of the international economic system, including the causes of, and net gains from, trade, and the United States role in the international system.
• What and how government policies affect the economy.

Understanding how the economy works will provide students with the tools for assessing the array of options facing national policymakers, and the likely consequences of the choices selected.

Course Objective

The Eisenhower School mission is .to prepare selected military and civilians for strategic leadership and success in developing our national security strategy and in evaluating, marshalling, and managing resources in support of that strategy. The Economics of National Security Strategy is one of seven core courses in support of this mission. At the end of this course students will be able to:

1. Understand how to use economic concepts and data to evaluate U.S. national security policy issues.
2. Comprehend the nature and strategic implications of economic decision-making.
3. Analyze the relative effectiveness of the tools of economic policy and their impacts on the national economy.
4. Analyze the political, economic and institutional framework of economic policy.
5. Analyze the interrelationships between economic strategy and resource allocation within the U.S. defense sector and linkages to other budgetary areas.
6. Synthesize domestic and international economic policy into national economic strategy.
7. Analyze the nature of information age technologies, productivity and investment and their relationship to national economic power.
8. Evaluate the global economic environment and marketplace in the post 9/11 period and design appropriate government policy to enhance national security strategy.
9. Examine and analyze the implications of economic choices and policies for U.S. strategy and for international security.

Student Assessment

Students will be assessed on (1) their understanding of the material presented, (2) their ability to integrate the concepts and principles learned, and (3) their ability to formulate alternative solutions to strategic challenges. The evaluation will be based on: The evaluation will be based on:

• Classroom performance, exercise, and contribution to seminar discussion (40%).
• In-Class mid-term exam at the end of Phase I. (20%)
• End of course examination, conducted as an in-class written test. (40%)

Course Materials

TEXTS:

• Electronic syllabus, Fall 2012. (Student Issue- Blackboard)
• R. Glenn Hubbard and Anthony Patrick OBrien, Economics, Pearson 3rd Edition, 2010. (Library Issue)
• Greg Ip, The Little Book of Economics. John Wiley & Sons, 2010. (Student Issue)
• Charles Wheelan, Naked Economics: Undressing the Dismal Science. W.W. Norton and Company, 2010. (Student Issue)
• Various electronic library sources, website references and additional teaching materials.
• Separate Issue: MacroSim Exercise materials.

Accreditation Policy:

The course has been developed with consideration of the accreditation standards outlined by the Chairman of the Joint Chiefs of Staff Instruction 1800.1, "Officer Military Education Policy (OPMEP)." The specific learning areas (LAs) are shown after each lesson objective in the syllabus pages.