Providing National Security - Essay Example

One of the monetary opportunity costs of not offering national security has to do with reduced foreign direct investment and local entrepreneurship. Reluctance towards national security increases the level of risk from engaging in business activities due to predisposition to theft, burglary among other violent criminal activities. In this respect, the government revenues from a tax on business enterprises will fall and translate to strained government operations (Kugler 182). Besides, the retarded investment activities from locals and foreigners out of the threat of insecurity increases the level of unemployment hence reduced national income per capita.

Insecurity in the contemporary world of increased incidences of terrorism besides local criminal outfits bolsters social instability. The safety of the citizens and visitors is always at stake and this contravenes the fundamentals of the constitution (Kugler 187). In the long run, the government risks mutiny which will eventually destabilize the state. This is one of the non-monetary costs incurred by the government in an attempt to cut down the security budget.