Using tariffs to protect national security →

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President Trump has directed the Secretary of Commerce to use authorities in the Trade Expansion Act of 1962 to determine if domestic steel production capacity is sufficient for national defense requirements. And:

Pursuant to section 232(b) of the Act (19 U.S.C. 1862(b)), if the Secretary finds that steel is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security, the Secretary shall, in the report submitted under subsection (a) of this section, recommend actions and steps that should be taken to adjust steel imports so that they will not threaten to impair the national security.

Adjusting steel imports suggests imposing tariffs (or quotas). Scott Summer provides an excellent breakdown of the inherent problems with imposing steel tariffs for national security reasons.

Though steel, along with many other commodities, is essential for national security, tariffs will hurt other manufacturers by driving up the cost of an important raw material.

Overall economic prosperity contributes more to national security than any particular industry.

Defense Reform Consensus →

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Yesterday, the American Enterprise Institute (AEI) hosted a forum to discuss the letter issued by a consortium of think tanks encouraging defense reform. Many speakers mentioned the need for data. It is time for Defense to have a Chief Data Officer and Chief Economist. In addition, DoD needs to remove many of the IT bottlenecks that prevent information gathering and sharing.

Speaking of Cost of Ownership →

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The Air Force isn't the only service procuring major weapon systems without a clear idea of the long term cost of ownership.

... the Navy may go into a critical decision in 2015 about whether to contract for up to 28 more Littoral Combat Ships without enough understanding of the long-term costs, the evolving concepts to sustain the vessels, or even whether they have enough bandwidth to exchange maintenance data with support facilities ashore.