Sharpening Signals and Reducing Noise for Better Defense Budgets

Military power is fundamentally built upon and limited by a nation's economic capacity, making the defense budget a critical instrument of economic statecraft. The current budgeting process, however, is often incoherent, failing to translate strategic goals into clear priorities and sending confusing signals to the defense industry. To maintain a competitive edge against adversaries, the United States must leverage its free-market economy by providing stable, consistent guidance on its defense needs. By strategically influencing massive private sector investments in dual-use technologies, the U.S. can effectively multiply its defense capabilities and better convert economic strength into fielded power.