Armchairs, The military's current stop-loss policy prevents certain service members from leaving the service at the end of their normal enlistment contract. This policy is affecting specific skills and grades deemed critical for the war on terrorism. In econimic terms, what are the similarities and dissimilarities between stop-loss and a conventional draft?
My thoughts... Similarities: - Those affected by stop-loss are, in a sense, draftees. - Therefore, stop-loss bypasses efficient labor market allocation mechanisms. - Stop-loss will tend to understate the economic (if not accounting) cost of military manpower--the largest portion of the defense budget. - Stop-loss (arguably) encourages inefficient utilization of society's resources. Dissimilarities: - Those affected presumably have a higher preference for military service than those normally targeted in a "conventional draft" (i.e., the 18 year old with little or no inclination toward military service). How does this affect the concept of economic rents? - Stop-loss doesn't require nearly the bureacratic overhead (e.g., selective service system, tracking down evaders) of a conventional draft. - Under a conventional draft, and the military's current closed labor system, you can't draft, say, an intelligence specialist with 10 year's of experience. Your thoughts... Regards, Maj Mike Strobl USMC, Manpower Analyst
