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Tuesday, March 25, 2008

Trade and National Defense

Don Boudreaux has an interesting discussion over at Cafe Hayek about the controversy over foreign companies contracting with the US Department of Defense (i.e. Airbus).

His dismisses most of the concerns raised, but opens the door for the complaint that,

if "we" go to war, "our" military might no longer have access to some materials and outputs necessary for fighting a war.

He does not mention how that might be a positive, as it discourages going to war with countries we trade with. This is the "Golden Arches Theory of Conflict Prevention" which posits that no two countries with a McDonald's have gone to war with each other. Or, in simpler terms, free trade prevents war.

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