The Hidden Cost of a Missile: Why the Headlines Get Cost Wrong

The high cost of U.S. Navy missiles used to shoot down inexpensive Houthi drones in the Red Sea is misleading, as headline figures ignore the vast operational ecosystem required for each engagement. A true "cost-per-effect" analysis must account for the entire support structure, including ships, crews, and logistics, making the real cost of an intercept far higher than just the missile's price tag. Defining both "cost" and "effect" is complex, as costs can be acquisition-based or operational, while effects range from tactical to strategic. A more effective framework would use comparative analysis, account for production scalability, and distinguish between direct, indirect, and sunk costs to drive smarter defense investment decisions.