A recent Congressional Research Service report considers how both macro- and micro-economic conditions impact national security. The report focuses on how the economy affects both the nation’s hard power (including defense spending, the defense industrial base, and economic sanctions) and soft power (the ability to generate and use economic power and to project national values).
The report surveys a number of areas, such as (1) the federal deficit and military spending; (2) human capital, including education and immigration; (3) research and technology; (4) globalization and trade; and (5) human rights and development aid.
