War Profiteering: Conflict Capitalism, Unveiling the Mercenary Economy

By Fouad Sabry

What is War Profiteering

A person or organization is considered to be a war profiteer if they make an unjustified profit from the conduct of warfare or by selling weapons and other items to parties that are engaged in a conflict. Typically, the term is associated with a great deal of negative meaning. There is also the phenomenon of general profiteering, which refers to the act of making a profit that is deemed excessive or unfair. The "shoddy" billionaires who purportedly supplied recycled wool and cardboard shoes to soldiers during the American Civil War are an example of those who profited off the war. In the years following the attacks of September 11, 2001, there are those who believe that large modern defense conglomerates such as Lockheed Martin, Mitsubishi, Boeing, BAE Systems, General Dynamics, and RTX Corporation are examples of companies that meet the criteria. The political dominance of the defense business is the basis for this claim. For instance, in 2010, the defense sector spent a total of $144 million on lobbying and donated over $22.6 million to congressional candidates. Additionally, during the time following 9/11, defense firm shareholders made significant profits.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: War Profiteering

Chapter 2: FIM-92 Stinger

Chapter 3: Halliburton

Chapter 4: Military-industrial complex

Chapter 5: Private military company

Chapter 6: KBR (company)

Chapter 7: Arms industry

Chapter 8: Investment in post-invasion Iraq

Chapter 9: Military budget of the United States

Chapter 10: M777 howitzer

(II) Answering the public top questions about war profiteering.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of War Profiteering.

• Language: English
• Publisher: One Billion Knowledgeable
• Release date: Jun 25, 2024

Book preview

Chapter 1: War profiteering

An individual or organization is considered to be a war profiteer if they make an unjustifiable profit from the conflict or by selling weapons and other items to parties that are engaged in the conflict.

Over thirty riots took place between the years 1776 and 1779, and they were directed against profiteering merchants. During the American Revolution, there were a number of food riots that were directed against these merchants.

In 1798, The donation of $75,000 by Lockheed Martin to Representative Mac Thornberry (R-Texas), who is the chair of the House Armed Services Committee, is a noteworthy illustration of the influence that those industries that produce weaponry have over the policy decisions that are made in the United States. Later on, Representative Thornberry was successful in getting a bill that would be beneficial to Lockheed Martin through the House of Representatives. This decision was taken as a direct result of Lockheed Martin's contribution to the decision-making process.

The United States of America is currently the greatest manufacturer and exporter of weapons in the world, followed by Russia, France, Germany, China, and the United Kingdom in that order.

During the Chaco War, Basil Zaharoff's Vickers Company was responsible for selling armaments to all of the various sides involved. Opel and IBM are two examples of companies who have been accused of profiting from the war because of their affiliation with the Third Reich. IBM was responsible for the development of technology that were utilized to count, categorize, and select Jewish individuals. These individuals were then targeted for efficient asset seizure, consolidation in ghettos, deportation, enslaved labor, and, finally, annihilation.

War almost always results in a diminishment of the available supply of commodities, which in turn leads to an increase in both prices and income. Regarding the economics of supply and demand, the most essential end is profit. This is because profit is the most significant end. When the war was going on, war-stuff

Businesses that provide the military with weaponry and training, as well as handle logistics and base management, are referred to as private military contractors. Civilian contractors are also included in this category. It may appear that private military contractors are comparable to mercenaries; nevertheless, the distinction lies in the fact that mercenaries engage in illegal activities. More recently, businesses who were involved in supplying the coalition forces during the Iraq War, like as Bechtel, KBR, Academi (previously known as Blackwater), and Halliburton, have come under fire for allegedly charging excessive prices for their services.

Those who profit from wars can be divided into two categories: those who profit by stealing military power and those who profit by contributing to the fight. On the black market, for instance, great profits might be made by selling rationed products like as cigarettes, chocolate, coffee, and butter. This was possible both during and after World War II. It was not uncommon for dishonest military personnel who were assigned responsibility for valuable property to transport rationed products to the underground market. There is also the possibility of charges being brought against medical and legal professionals who accept monetary compensation in exchange for assisting young men and aspiring politicians in evading a draft.

In spite of the fact that the war was initially fought with the purpose of expanding territory and amassing resources, the nation may also benefit politically and strategically by exchanging governments that do not serve its interests with ones that are important to its allies. The Central Intelligence Agency (CIA) provided the Contras with weaponry in order to carry out terrorist operations against the government of Nicaragua between the late 1970s and the early 1990s. This illustrates one example of this.

War profiteers are political individuals that accept payments and favors from corporations that are involved in the manufacturing of war in order to further their own interests.

The first Secretary of War appointed by Abraham Lincoln, Simon Cameron, at the beginning of 1862, was compelled to step down as a result of allegations of corruption over war contracts.

In 1947, The representative for Kentucky, Andrew J.

May, Chief Executive Officer of the influential Committee on Military Affairs, was found guilty of accepting bribes in exchange for contracts to work on war projects.

A clandestine operation to topple the government of Guatemala, which was led by Jacobo Arbenez, was initiated by the United States in the year 1953.

The United States of America initially referred to the government of Guatemala as a communist administration. This marked the beginning of the process.

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.

When the government of Guatemala made the decision to compete with the United Fruit corporation, this would not be tolerated because the corporation had large holdings within the country.

At the same time that he was assisting in the planning of the intervention, a number of officials, including Walter Bedell Smith, who had previously served as the director of the Central Intelligence Agency and was currently serving as the Undersecretary of State for President Eisenhower, were candidates for executive positions within the corporation.

Due to the fact that this coup was successful, the United Fruit Company was able to maintain its existing holdings within Guatemala, which ensured that its revenues would be protected.

In the course of the cold war, the United States became involved in a variety of engagements that ultimately led to war profiteering. This is a typical example of such engagements.

With the recent conflicts in Iraq and Afghanistan, there has been an increase in the amount of war profiteering among politicians in the modern era.

According to an article by USA Today in 2011 the top 100 largest contractors sold 410 billion dollars’ worth of arms and services.

The steps involved in becoming a member of the government are illustrated by this example, after which one was employed as a lobbyist, back to the government, as well.

Up till the present day, the rotating door has not been eliminated.

There is a demand for the improvement of military technology when there is war. Technologies that were initially developed for the military frequently have applications outside of the military as well. There are benefits to be gained by both the state and corporations from scientific research. One of the most well-known examples is Siri, which is an artificially intelligent personal assistant that has been integrated into Apple products since October 4, 2011. CALO, a project that was supported by the government's Defense Advanced Research Projects Agency (DARPA), was the source of funding for Siri. The phrase Cognitive Assistant that Learns and Organizes is what the abbreviation CALO stands for.

The purpose of the conflict Profiteering Prevention Act of 2007 was to establish criminal sanctions for those who profit from conflict and other individuals who take advantage of efforts that are financed by taxpayers in Iraq and other countries around the world.

Within the backdrop of the Iraq War, many businesses, including Halliburton, have been condemned for what is believed to be their involvement in war profiteering. Halliburton, a corporation that provides oil field services, was one of the most successful businesses to profit from the Iraq War. The federal contracts related to the Iraq war brought in $39.5 billion for Halliburton.

During the Afghanistan War, the average performance of the stock market was 58% lower than the performance of stocks in the defense industry. Some commentators have questioned whether or not the United States should be considered to have failed in its mission to seize control of Afghanistan in 2021 that was led by the Taliban. According to Jon Schwarz, who writes for The Intercept, These numbers suggest that it is incorrect to conclude that the Afghanistan War was a failure. On the other hand, it might have been a remarkable achievement from the point of view of some of the most influential people in the United States. Particularly noteworthy is the fact that all five of the largest defense contractors have retired high-ranking military leaders serving on their boards of directors.

Some of the most prominent oil and gas businesses, including Shell, In popular culture, the word war profiteer conjures up two stereotypes: the wealthy businessman who sells weapons to governments, and the semi-criminal black marketeer who sells commodities to regular individuals. Both of these types of people are considered to be victims of the term. In countries where English is the primary language, this is especially strongly connected with Britain during World War II. Rather than merely profiting passively from conflicts, the image of the businessman profiteer contains the connotation that influence and power are utilized to intentionally provoke wars for the purpose of gaining personal benefit. It was commonly believed that such profiteers existed in the aftermath of World War I, and this belief