Blog author: dphelps
Wednesday, August 17, 2005
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In a FoxNews article, Jack Spencer of the Heritage Foundation reveals some interesting finds from their year-long study of the military industry: US Defense relies heavily on a global free market for its equipment. This may seem to fly in the face of the idea that if anyone ought to buy American, it is the American government. But as Spencer points out

Congress has tried repeatedly over the years to steer defense contracts in directions that would supposedly shore up or expand America’s military-industrial capacity. Yet these efforts have nearly always interrupted the natural tides of the market and led to unintended consequences, including inefficient practices, high prices and limited choices for the military. America’s war-fighting institutions have consistently achieved better results when they have relied on the free market to decide where and how products should be made.

Simply put, for good stuff, the free market delivers. This is a fact. For a concise case study of how and why free markets work (and why subsidies don’t), check out the rest of this article here.