My purchases were not military Andy.
Automatically buy products your country needs means just that doesn't it? If my country needs products, the game will order them. If I turn this option off then it shouldn't automatically buy products my country needs. Else the option is completely functionless and should be removed.
The penalty for having insufficient supplies was introduced recently in the form of the supply index. Should my country not have enough supplies because I haven't ordered them then the supply index will drop and so, purportedly, lower the welfare index.
In summary then, make these things work as they should or remove them. Turning off auto buying doesnt work. Therefore I am unlikely to experience shortages in country supplies unless I have insufficient cash, therefore I am unlikely to see the supply index fall and further, unlikely to see my welfare fall. (A note on that last, even a zero supply index doesn't drop welfare currently).
Could we please have these things functioning as intended, thank you very much, Crafty.