Enemy Objectives Unit

The Enemy Objectives Unit was a research group of economists that used input/output models in recommending Nazi targets to allied Eighth Air Force.

This group is often used as a case study in applied economics, in particular their suggestion to Allied commanders to destroy ball bearing factories, as their models showed them to be the most vital to Nazi industry [http://home.uchicago.edu/~mgugliel/guglielmo-war2.pdf] (this particular recommendation turned out to be incorrect as the Nazis re-engineered many machines to use other methods of friction reduction and because of cushioning reasons discussed below).

Recommendations were based on many factors such as the cost of bombs per unit of destruction, cushion (ability of Nazi industry to absorb the damage). Conventional target factories, such those that produced weapons, tank, and aircraft had developed methods of rapid recovery after being bombed and were considered to be less cost-effective for this reason.

One point which this group underestimated was the effectiveness of bombing German oil refineries—they had correctly estimated the amount of stocks kept but failed to account for the immediate conservation methods the Germans would employ. The later attacks on Nazi fuel reserves are thought by many historians to be a substantial factor in Nazi defeat.

The group also recommended against the Bombing of Dresden in World War II, on a purely economic basis.