National Security's Influence on Economies and Resulting Economic Influence on National Security

By: Tory Wright June 7, 2021 Abstract: The intention behind national economies is to secure the population; in the necessities and in rises in the standard of living. This is a product of reduction of the global economy; that assists in global distribution of resources. Nations however compete with each other in not only acquisition of resources, but also in funding their public services; that sustain their populations. The strength of economies is prioritized; to ensure that resources can be effectively acquired and ample funding exists for public services. Economic models that systemically maximize growth of economies are intended to maximize provisions for growing populations. Economic models however tend to overcompensate for the requirements of populations. This results in economies outgrowing the populations themselves. Economies require populations with adequate numbers to facilitate their functions. Where this is not the case, economies become unstable; and crisis looms. Eventually, economies collapse; and the necessities for a nation’s security collapse with them. This begins in the decline phase of the crisis cycle; and continues through the recovery phase. These aspects of economic models are eventually in direct conflict with national security. The short term gains that exist in the growth phase of the crisis cycle, eventually lead to the long term losses that result in the decline phase. A more long term economic strategy appears to be warranted; in the interest of national security, as a nations security falls off sharply, during severe economic crises. Global Economics:

The global economy systemically promotes cooperation between the nations of the world. Much of the diplomacy is rooted in trade; in that the expenditures of domestic life and resources associated with forcefully acquiring foreign resources can be mitigated through it. In a game theoretical sense, it’s a global economics game. Humans are expected to behave in certain manners; in the various tiers of groupings, from families to communities to nations to humanity and even beyond to sentient life. The importance of cooperation to survival in every tier strongly exists; as every tier has issues of it’s own that require cooperation for solutions. Of course, the dynamics of this are complex, however principles for modeling do not have to be. Game theory can help; by suggestions for optimization. For instance, optimizing foreign relations can revolve around balancing assertiveness with acts of good faith. This gives the impression of fair mindedness; that can ease insecurity in economic diplomacy. Adam Smith suggested many courses of action that might help achieve such a balance; and many of them are still relevant today. These balances however become much more difficult to achieve when a nation’s economy is in crisis. The long term effects of strategies that exploit short term gains have a tendency to effect relations both foreign and domestic in an unfavorable manner. The eventual crisis that such strategies promote consistently result and compound issues. The combination of failing foreign relations and decreasing resources for security measures is much less than optimal conditions for a nation’s security. The crisis cycle is a product of such strategies; that is an enormous issue that needs to be addressed, not only for the security of nations, but also for humanity itself, and even the collective of species of the biosphere. Cooperation has become much more crucial with the emergence of Guaranteed Mutual Destruction. Domestic Economics: Nations have a long history of stratifying their populations into class systems; to achieve specific goals. This is still the case today. An upper class has tended to be employed to ensure the growth of economies; through enacting economic policy. In the old world, nobles were the distributed intelligence that addressed the complexity of national economies. Since the late 1800s, investors have served that purpose. Policies that protect investors by systemically promoting returns on investments, into perpetuity, also incentivize the growth of economies… into perpetuity. Businesses require growth in order to fund the quadratic returns that keep investors funds on the company’s books. The value of public companies is also much more than founders can accumulate in order to buy the companies out of the corporate model. This economic model has been consistently demonstrated to be unsustainable. This is the basic understanding of the crisis cycle; and how it propagates. Feedback loops with the global economy have also been observed; resulting in global economic issues. This happens in a chain reaction type manner; through partnerships and allegiances abroad, as pathways. Rigid Growth Incentives: Growth in economies is expected; and even required with expected population growth. There is a direct relationship between population and economy. The economy serves to provide goods and services to the population; and the economy requires adequate population to facilitate it’s functions. This suggests that an economy could outgrow a population; and modern observations seem to suggest that is what is happening when markets reach growth maximum. The markets appear to be running out of prospective patrons. This is a very concerning issue; when the business model has an imposition to continue producing quadratic returns. The lack of increases in profits makes this a great expectation; and diminishing returns are the outcome. The fact that the company is systemically locked into these conditions is concerning as well. The common outcome is that the diminishing returns are differed away from the initial investors; to the patrons, insurance companies, employees, competitors and even tax revenue. With these effects, wealth and markets begin to aggregate. Considering economic security, competitive markets have built in contingencies. Monopolies are in essence single points of failure. A market controlled by a single company, who’s business model is known to be unsustainable is a very serious issue; in that if the company fails, the entire market fails with it. Prevention of monopolies is now policy; but it’s achieving limited success. Regional monopolies are allowed; for the sake of policies that systemically protect investors. There is however no solution for possible failures of companies; that could result in monopolies. Markets could very well still aggregate in this manner. Wealth being aggregated away from employees and patrons is unsustainable as well; due to companies requiring patronage to continue making profits. Other companies require the patronage of a company’s employees to survive; thus wages are an important aspect of a nation’s economy, due to the modern job market. A living wage is simply required for a healthy economy; and aggregation of wealth is an eventual defeater to it. This is a very concerning issue; not only with economic security, but also because it tends to result in civil unrest. This is the result of individuals being concerned about their own security or the security of their families. This condition is of course writhe with viscera; and can and does result in demonstrations that can be violent. This also tends to have a negative effect on public health; that results in increases in crime rates. The public safety issues are of course large concerns as well. There are many studies describing the negative impact of disparity on human psychology. Conclusions: Lack of understanding that growth rates have an upper limit, with respect to balance of size of the economy and population, and growth incentives that systemically continue to demand growth, where it is no longer feasible, eventually, consistently lead to conditions that reduce resources for national security. This propagates through destabilization of the economy, that leads to loss of established complexity, and severe crisis; which results in substantial decreases in funding for all administrations, bureaucracies, and departments via loss of tax revenue. Combined with the negative effects on public and foreign relations, more severe crises can put even a world superpower at risk for societal collapse; as demonstrated by the fall of the Soviet Union decades ago. It is imperative that the long term consequences of ignoring upper limits of economic growth be well understood and systemically mitigated; for the sake of national security; not only by it’s domestic outcomes, but also by it’s negative effects on global cooperation, as it is required for addressing larger threats against all nations combined. In recent history, threats have emerged that have the capacity toward near to total destruction of all life on the entire planet. Game theoretical models demonstrate that there is a minimum requirement of global cooperation; in the interest of national security. This can be achieved through long term strategies; based on sustainability.