FAS

CRS: Economics a Growing Factor in National Security

01.26.11 | 2 min read | Text by Steven Aftergood

Economic vitality and national security are now inextricably intertwined, a new report (pdf) from the Congressional Research Service explains.

“There is scarcely an economic policy issue before the Congress that does not affect U.S. national security.  Likewise, there is scarcely a national security policy issue that does not affect the economy.”

“The United States has long been accustomed to pursuing a ‘rich man’s’ approach to national security,” the CRS report said. “The country could field an overwhelming fighting force and combine it with economic power and leadership in global affairs to bring to bear far greater resources than any other country against any threat to the nation’s security…. [In the past,] policies for economic growth and issues such as unemployment have been viewed as domestic problems largely separate from considerations of national security.”

“The world, however, has changed.  Globalization, the rise of China, the prospect of an unsustainable debt burden, unprecedented federal budget deficits, the success of mixed economies with both state-owned and private businesses, huge imbalances in international trade and capital flows, and high unemployment have brought economics more into play in considerations of national security.”

Consequently, “In national security, the economy is both the enabler and the constraint.”

The 77-page CRS report examines the intersection of economics and national security across a range of policies, including trade, education, research and development, and so on.  The text is occasionally prosaic (e.g., “trade represents an exchange of goods or services between two or more willing parties”) but it is also full of detailed and interesting information that may be useful to those who have not already made up their minds on this set of issues.

See “Economics and National Security: Issues and Implications for U.S. Policy,” Congressional Research Service, January 4, 2011.

publications
See all publications
Government Capacity
Blog
What’s Next for Federal Evidence-Based Policymaking

In recent months, we’ve seen much of these decades’ worth of progress erased. Contracts for evaluations of government programs were canceled, FFRDCs have been forced to lay off staff, and federal advisory committees have been disbanded.

11.13.25 | 6 min read
read more
Global Risk
Report
Inspections Without Inspectors: A Path Forward for Nuclear Arms Control Verification with “Cooperative Technical Means”

This report outlines a framework relying on “Cooperative Technical Means” for effective arms control verification based on remote sensing, avoiding on-site inspections but maintaining a level of transparency that allows for immediate detection of changes in nuclear posture or a significant build-up above agreed limits.

11.10.25 | 3 min read
read more
Government Capacity
Blog
A Research, Learning, and Opportunity Agenda for Rebuilding Trust in Government

At a recent workshop, we explored the nature of trust in specific government functions, the risk and implications of breaking trust in those systems, and how we’d known we were getting close to specific trust breaking points.

11.10.25 | 6 min read
read more
Education & Workforce
day one project
Policy Memo
Analytical Literacy First: A Prerequisite for AI, Data, and Digital Fluency

tudents in the 21st century need strong critical thinking skills like reasoning, questioning, and problem-solving, before they can meaningfully engage with more advanced domains like digital, data, or AI literacy.

11.07.25 | 13 min read
read more