The Relationship Between Economic Development And National Defense Needs

The relation between the economic development and the demand of national defense is a significant issue that we must face properly. Under the circumstance of socialist market economy, economic development is the foundation and sustentation of national defense, while national defense will guarantee, regulate and promote economic development though sometimes impede its growth. This article mainly introduced some countries' experience and the history and reality of our nation's defense demand, and made an in-depth analysis on the relation of economic development and demand of national defense. Firstly, the demand of national defense is an important part of the gross social demand, and by the multiplication effect of payout, the changes of its scale will to a certain extent regulate the economy's operation. When the society lacks effective demand so as to leave mass recourses unused, it is a liable macroeconomic policy to increase national defense payout duly. Secondly, in terms of gross economic theory, government payouts of the same quantity will with no exception stimulate the economy whether used in the construction of defense or in basic establishments. Nevertheless in economic practices, these two types of payouts have different impacts on economic growth due to their different expense structures. At last, since the 1990's, in the movement of our economic system from planned economy to market economy, our economic developing periods are more and more resemble those in western countries. Therefore, our government should also adopt anti-cyclemacroeconomic policies to get through economic crisis. Nowadays, the effective demand is insufficient and the economic growth is slack in China, under such circumstance, the national defense construction may actively react by increasing inputs moderately, accordingly to contribute to the regulation of economic structure and the growth of gross economy.