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Pricing in externalities (such as national defense impact) is a basic function of economic policy.

I searched 'economics 101 strategic industries' and found this[1] within 30s which includes an overview of 'national self-sufficiency'. It presents the standard argument, including the parts you claim the standard argument ignores.

I personally favor decentralized planning over markets, but I find it unnecessary to slander economics.

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1: https://www.adamsmith.org/economics-101






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