War profiteering
A war profiteer is any individual or organization that earns excessive or unethical profit from warfare or by selling weapons, supplies, or services to parties engaged in conflict. The term typically carries strong negative connotations and is often associated with exploitation during times of national crisis. More broadly profiteering, making a profit, criticized as excessive or unreaso
Overview
A war profiteer is any individual or organization that earns excessive or unethical profit from warfare or by selling weapons, supplies, or services to parties engaged in conflict. The term typically carries strong negative connotations and is often associated with exploitation during times of national crisis. More broadly profiteering, making a profit, criticized as excessive or unreasonable, also occurs in peacetime. An example of war profiteers were the shoddy millionaires of the American Civil War, who allegedly sold recycled wool and cardboard-soled shoes to soldiers, prioritizing profit over quality and safety. US Congress have argued that major modern defense conglomerates including Lockheed Martin, Mitsubishi, Boeing, BAE Systems, General Dynamics, and RTX Corporation fit the description in the post-9/11 era. This argument is based in the political influence of the defense industry, for example in 2010 the US defense industry spent $144 million on lobbying the US government and donated over $22.6 million to congressional candidates, as well as large profits for defense company shareholders in the post-9/11 period.
American Revolution
There were several food riots during the American Revolutionary War against profiteering merchants, more than thirty between 1776 and 1779. In 1777, a mob of Bostonian women beat the merchant Thomas Boylston and confiscated his stock of goods for hoarding coffee and sugar to drive up their prices. In East Hartford, Connecticut, a mob of twenty women and three men took 218 lbs of sugar from a merchant named Pitkin. In Beverly, Massachusetts, a mob of 60 women and some men forced local merchants to charge the same price for sugar in American paper money and gold coin.
Industrial Revolution
In 1798, American inventor Eli Whitney received a government contract to manufacture 10,000 muskets in less than two years. After failing to produce a single musket, he was called to Washington to defend his expenditure of the treasury funds before a committee that included both John Adams and Thomas Jefferson. Believing to demonstrate the ingenuity of interchangeable parts, Whitney earned widespread support and has been incorrectly credited with inventing the idea of interchangeable parts. However Merritt Roe Smith concluded that this demonstration was staged by marking the parts beforehand, so they were not as interchangeable as he made them seem. Eventually Whitney was able to accomplish his goal of 10,000 muskets with interchangeable parts at a relatively low cost in the next eight years, and later produced more than 15,000 in the four years after that.
Military–industrial complex
A prominent example of the impact arms-producing industries have over American policy is Lockheed Martin donating $75,000 to House Armed Services Committee chair Representative Mac Thornberry (R-TX). Representative Thornberry later passed a bill through the House of Representatives that benefitted Lockheed Martin. This decision was made as a direct result of the influence of Lockheed Martin. Politico has stated that Thornberry was the "highest overall recipient of contractor contributions among all of the 89 members of the House and Senate Armed Services Committees."
Contemporary manufacturing
Currently, the United States is the world's largest weapons manufacturer and exporter, followed by Russia, France, Germany, China and the United Kingdom consecutively.
International arms dealers
Basil Zaharoff's Vickers Company sold weapons to all the parties involved in the Chaco War. Companies like Opel and IBM have been labeled war profiteers for their involvement with the Third Reich. In the case of IBM they developed technologies that were used to count, catalog, and select Jewish people whom could then be targeted for efficient asset confiscation, consolidation in ghettos, deportation, enslaved labor, and, ultimately, annihilation.
Commodity dealers
War usually leads to a shortage in the supply of commodities, which results in higher prices and higher revenues. Regarding supply and demand in terms of economics, profit is the most important end. During war time, "war-stuff" is in high demand, and demands must be met. Before the invasion of Iraq in 2003, oil production was controlled by the Iraqi government and was off limits to Western companies. As of 2014, foreign owned private firms dominate Iraqi oil production.
Civilian contractors
Private military contractors, including civilian contractors, are businesses that supply weapons and training to the military, and also handle logistics and base management. While private military contractors may seem similar to mercenaries, the difference is that mercenaries operate illegally. More recently, companies involved with supplying the coalition forces in the Iraq War, such as Bechtel, KBR, Academi (formerly known as Blackwater) and Halliburton, have come under fire for allegedly overcharging for their services. The modern private military company is also offered as an example of sanctioned war profiteering. On the opposing side, companies like Huawei Technologies, which upgraded Saddam's air-defense system between the two Gulf Wars, face such accusations.
Black marketeers
A distinction can be made between war profiteers who gain by sapping military strength and those who gain by contributing to the war. For instance, during and after World War II, enormous profits were available by selling rationed goods like cigarettes, chocolate, coffee and butter on the black market. Dishonest military personnel given oversight over valuable property sometimes diverted rationed goods to the black market. The charge could also be laid against medical and legal professionals who accept money in exchange for helping young men and nascent politicians evade the draft.
The state
Though war initially had the objective of territorial expansion and resource gathering, the country may also profit politically and strategically, replacing governments that do not fulfill its interests by key allied governments. One example of this is the CIA supporting the Contras with weapons to carry out terror attacks against the Nicaraguan government between the late 1970s and early 1990s.
Politicians
Political figures taking bribes and favors from corporations involved with war production have been called war profiteers. Abraham Lincoln's first Secretary of War, Simon Cameron, was forced to resign in early 1862 after charges of corruption relating to war contracts. In 1947, Kentucky congressman Andrew J. May, Chairman of the powerful Committee on Military Affairs, was convicted for taking bribes in exchange for war contracts. In 1953, the United States began a covert mission to overthrow the Guatemalan government under Jacobo Arbenez. The process began with the United States labeling the government of Guatemala as a communist government. According to William Blum the reason for the United States’ intervention into Guatemala is that it was pushed by lobbyist from the United Fruit Company. The United Fruit Company had significant holdings within Guatemala and when the government decided to compete with the company this would not be accepted. Numerous officials such as President Eisenhower's Under-Secretary of State (and formerly director of the CIA) Walter Bedell Smith was a candidate for an executive position in the company while at the same time he was helping to plan the intervention. This coup was successful and the United Fruit Company was able to keep its holdings within Guatemala thus ensuring its profits were secure. This is typical of the sort of engagements that the U.S became involved in during the cold war that resulted in war profiteering. Modern-day war profiteering among politicians has increased with the recent wars in Iraq and Afghanistan. According to an article by USA Today in 2011 the top 100 largest contractors sold 410 billion dollars’ worth of arms and services. Within this massive expense of services has evolved what is called the revolving door. This revolving door has not differentiated between the two political parties. An example of this revolving door is the case of William J. Lynn III. In 2010 he was confirmed to serve as the number two man in the Pentagon after he worked as a lobbyist for Raytheon. This example shows the process of a person joining the government, then being hired as a lobbyist, and back to government. In the UK there are some restrictions on the jobs ex-politicians can take, and similar rules, although less extensive, apply to senior civil servants.
Scientific research
War provides demand for military technology modernization. Technologies originally designed for the military frequently also have non-military use. Both the state and corporations have gains from scientific research. One famous example is Siri, the artificially intelligent "personal assistant" programmed into Apple devices since October 4, 2011. Siri was a spin-off of CALO, a project funded by the government military development group, DARPA. CALO is an acronym that stands for "Cognitive Assistant that Learns and Organizes".
Wikipedia contributors · War profiteering · revision 1365881422 · CC BY-SA 4.0 · Plain text extracted and formatting adapted; tags derived from linked topics.