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Spring 2019
ISSN 0890-913X
Volume 34, Number 1

State-Provided Defense as Noncomprehensive Planning

Christopher J. Coyne, George Mason University
Abigail R. Hall, University of Tampa
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TheJournalofPrivateEnterprise34(1),2019,7585State-ProvidedDefenseasNoncomprehensivePlanningChristopherJ.CoyneGeorgeMasonUniversityAbigailR.HallUniversityofTampa______________________________________________________AbstractState-provideddefenseisaformofnoncomprehensivegovernmentplanningwithtwoinherentproblems.Thefirstistheknowledgeproblemofhowtoallocatescarceresourcestotheirhighest-valueduses.Thesecondisthepowerproblemcausedbythediscretionarypowergrantedtothoseinthemanagerial-administrativestatetoplanmilitarypoliciesandresourceallocation.WediscussthesedualproblemsinthecontextoftheUSdefensesector.______________________________________________________JELCodes:H11,H41,H56,P11Keywords:knowledgeproblem,nationaldefense,powerproblemI.IntroductionEvenstaunchcriticsofthemanagerial-administrativestate,suchasLudwigvonMises,F.A.Hayek,JamesBuchanan,andGordonTullock,identifyacrucialroleforgovernmenttoprovidesecuritytocitizens.PerhapsthebestillustrationisBuchanansnotionoftheprotectivestate,”whichemergesattheconstitutionallevelandistaskedwithprotectingthecorerightsofcitizensviainternalsecurity,contractenforcement,anddefenseagainstexternalthreats(1975,pp.9597).Thereisafundamentaltensionintheworkofthesescholars.Theyidentifynumerousinherentproblemswiththeoperationsofthemanagerial-administrativestate.Theseincludetheinabilitytoengageineconomiccalculation,whichpreventstheefficientallocationofscarceresources,andperverseincentivesinpoliticalinstitutions,whichresultinavarietyofundesirableoutcomes.Atthesametime,theseauthorsarguethatsomethingakintotheprotectivestatecanavoidtheseproblemsandsuccessfullyprovidecitizenswithprotectionfromthreats.
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