The Economics of Industrial Preparedness Planning and Raw Materials Stockpiling
Abstract
An economy's reaction to a war is an important economic subject which has been relatively neglected in recent years. Such inquiry is the necessary basis of Industrial Preparedness Planning (IPP) and raw materials stockpiling by the Federal government. This study hypothesizes that substitution could obviate the need for formal IPP and stockpiling of the type now practiced. To test this hypothesis, input-output, a major conventional tool of preparedness planning was exercised for a circumstance more likely to surface wartime stresses than government applications do. This approach identifies sectors experiencing large direct and indirect increases in demand, particularly in defense demand. Study of motivational factors and time-to-availability is limited by the data presently collected and the possibility of rapid changes in production techniques. Without addressing these, it is likely that preparedness planning will continue to be substantially deficient. The study concludes that peparedness planning should be focused upon ensuring the adaptive efficiency to prevent strategic failure without maintaining large federal stockpiles.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1982
- Accession Number
- ADA116776
Entities
People
- William S. Stambaugh
Organizations
- Air Force Institute of Technology