Proponents of arms control and disarmament are often confronted with the argument that reductions in defense expenditure lead to cutbacks in military industries and thus to economic hardship. While a reduction in defense production would cause some economic dislocation, this would be mitigated by the ability of the economy to adapt to changing patterns of production. This book, first published in 1983, assesses the likely effects of reductions in defense industries by an examination of the roles these industries play in national economies. Each chapter discusses industry employment, output, research and development, capital value, profitability, concentration and competition, internal organization and regional employment concentration. Other questions considered include the economic importance of weapons exports, the defense industry as a ‘leading edge’ in maintaining national technological capabilities, and the reliance of individual firms on defense contracting.

Power, Threat, or Military Capabilities assesses two mainstays of international relations, balance of power and balance of threat, using the case of US balancing against the Soviet Union in the later Cold War. It also proposes balance of military capabilities, which uses offense-defense theory to argue that countries balance against the ability of others to conquer or compel them. Power, Threat, or Military Capabilities finds that the US was more powerful than the Soviet Union so US behavior is not explained by balance of power. The US did not perceive the Soviet Union as likely to initiate war or to run risks that might lead to war so US behavior is not explained by balance of threat. This book determines that the US was concerned about its ability to defend Europe and the Persian Gulf so US behavior is explained by balance of military capabilities.