ABSTRACT
he economic benefits to the US Government derive partly from production cost savings realized by the US military service that acquires the same item of equipment sold to a foreign customer due to the higher production rates required to meet foreign demand. In the ideal world, the exact economic costs of foregoing individual sales of specific items to particular nations would be calculated in all their richness for a given geographic area, in the case the Middle East. Local and state economic impacts would then be aggregated to construct a national composite. To these would be added the uniquely national impacts to provide a complete portrait of the total economic impact of restrictions. The chapter analyses the national economic impacts of lost sales by focusing on two major economic consequences. First, national income and employment impacts are measured. Second, lost federal tax revenue impacts are evaluated.
