John N. Ellison - Mobilizing U.S. Industry: A Vanishing Option for National Security?

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Mobilizing U.S. Industry

A Vanishing Option for National Security?

Published in cooperation with the International Economic Studies Institute

Mobilizing U.S. Industry

A Vanishing Option for National Security?

John N. Ellison, Jeffrey W. Frumkin, and Timothy W. Stanley

First published 1988 by Westview Press, Inc.

Published 2021 by Routledge
605 Third Avenue, New York, NY 10017
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

Routledge is an imprint of the Taylor & Francis Group, an informa business

Copyright 1988 by Taylor & Francis

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Notice:
Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe

Library of Congress Cataloging-in-Publication Data
Mobilizing U.S. industry.
(Studies in American business and the international economy)
Bibliography: p.
Includes index.
1. Industrial mobilization--United States. 2. Munitions--United States. 3. United StatesDefenses. 4. United States--Military policy. I. Ellison, John N. II. Frumkin, Jeffrey W. III. Stanley, Timothy W. IV. Series.

UA18.U5U45 1988 355.2'6 87-34097
ISBN 0-8133-7573-8

ISBN 13: 978-0-3670-1215-1 (hbk)
ISBN 13: 978-0-3671-6202-3 (pbk)

DOI: 10.4324/9780429042010

Contents

The Honorable Henry H. Fowler

II. The Relevance of the U.S. Industrial Base and Mobilization Capacity

III. Where the U.S. Stands Today: Key Sectors and Case Studies

A. Raw Materials

B. Petroleum and Energy

C. Ferroalloys

D. Machine Tools

E. Semiconductors

Case Study Conclusions

IV. Alerting National Security Policy Makers to Economic Industrial Problems

V. Economic Policy Options: Domestic and International

VI. Conclusions and Recommendations

1. II. The Relevance of the U.S. Industrial Base and Mobilization Capacity
2. III. Where the U.S. Stands Today: Key Sectors and Case Studies
   1. A. Raw Materials
   2. . Petroleum and Energy
   3. C. Ferroalloys
   4. D. Machine Tools
   5. E. Semiconductors
3. Case Study Conclusions
4. IV. Alerting National Security Policy Makers to Economic Industrial Problems
5. V. Economic Policy Options: Domestic and International
6. VI. Conclusions and Recommendations

1. ii

Guide

This book deals with an increasingly important, but recently somewhat neglected phase of our national security and that of our allies in the industrialized democracies the maintenance of an adequate mobilization base and mobilization preparedness.

I view this topic from the perspective of one who has participated in the partial mobilization of American industry during the build-up in the Korean conflict and the early years of the NATO alliance and its full scale mobilization in World War II.

The combination of constraints in democratic societies, largely political in nature, on the size and scale of ready military forces and the new prospects for negotiated reduction and control of nuclear weapons with reduced reliance on nuclear deterrence places a new emphasis on the increasing importance of adequate conventional forces.

By the same token, these factors should focus new and increased attention on our mobilization base and the preparedness capability of the U.S. to augment its conventional military forces in being at the outbreak of any major conflict.

We must not forget or let others forget that we were once and could be again the "arsenal of democracy".

Totalitarian societies, ruled by dictatorships or small elites, are not constrained politically in building up and equipping conventional forces, as are democratic societies. Indeed, they can do so for aggressive or "blackmailing" purposes. Moreover, they can ignore or suffer the economic costs of this activity as well as the internal resistance to it.

Twice in this century the United States has had to embark on conflicts of global proportions, requiring full scale mobilization, because the imbalance of conventional military power in Europe and Asia threatened to result in a dominance in those crucial areas of forces that would be a threat to our freedom and democratic way of life.

Despite our demobilization in the wake of World War II we witnessed the renewed buildup and maintenance of armed forces of the U.S.S.R. far in excess of those needed for defense in a shattered Europe. These forces presented a clear and present danger to the democracies of Western Europe as the U.S.S.R. established and sustained totalitarian regimes in the nations of Eastern Europe.

For over forty years peace and security for the democracies of Western Europe has been maintained despite sizeable imbalances of conventional forces in favor of the U.S.S.R. and the nations of the Warsaw Pact. This peace and security has been maintained by the nuclear deterrent and by a significant U.S. military presence on that continent.

The entry into an arms reduction and control agreement between the U.S. and the U.S.S.R. covering the intermediate range weapons of the U.S. and the U.S.S.R. on European soil seems likely, and an accord on limiting intercontinental weapons could follow.

This necessarily calls for a careful re-examination of the imbalances of the conventional forces readily available to the AT command and the U.S.S.R. and the members of the Warsaw Pact. It will call for the taking of steps by negotiation or build up to cure any imbalances that are deemed serious by collective action of NATO members.

It also calls for a careful re-examination by the ATO countries, and, particularly, the U.S., of the state of their mobilization base and industrial preparedness and the adoption of a program to make them far more effective than they are today.

This achievement through continuing business-government cooperation will provide a necessary and desirable complement to our active armed forces and their back-up reserves. The awareness abroad of our industrial preparedness should strengthen immeasurably the deterrent value of our forces in being and increase the chances of maintaining the peace. Who can doubt the political and psychological value of a realization that the full strength of the U.S. industrial power can be readily and effectively mobilized, in the minds of our allies and friends? as well as our potential enemies?

In addition to the political difficulties of maintaining adequate active conventional forces and the need to compensate for declining effectiveness of nuclear deterrence, this book develops another reason for a reexamination, restoration and continuing maintenance of a mobilization base and industrial preparedness program. It points out the large amount of industrial restructuring going on in the "arsenal of democracy" and rightly observes that America's traditional industrial base has already rusted away, moved off-shore, or is being eroded by structural changes in the economy and strong foreign competition. Thus the mobilization-surge-rapid augmentation option is fast disappearing just as it becomes more and more vital to U.S. and allied security.

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