Chapter Three of Pax Americana: The Military Industrial
Complex and the War On Terror by Danny Quintana
danny_quintana@yahoo.com
Bio of Danny Quintana
Arm Beyond Doubt: A Brief History
of the Military Industrial Complex
"We must be the great arsenal of democracy."
-- President Franklin D. Roosevelt, 1944
The weapons manufacturers who sold rifles, bullets, artillery, uniforms and even food to the United States Army during the civil war were the
pioneers of the arms manufacturers that are in business today. Rifle manufacturers like Colt and Marlin have been -producing weapons for
the government since the 1800’s.1

As technology and the industries of the country advanced the weapons became more complex and expensive. Since the United States Civil
War was the world’s first modern industrial war, the casualties were truly horrific. As civil war scholar Burke Davis explains: At least 618,000
Americans died in the Civil War, and some experts say the toll reached 700,000. The number that is most often quoted is
620,000. At any rate, these casualties exceed the nation's loss in all its other wars, from the Revolution through Vietnam. 2
And the companies who report earnings that do not match or exceed Wall Street’s expectations are punished with sell orders and falling stock
prices. Thus, the largest defense contractors, all of whom are public companies, want an increase in defense spending. This is normal
business and bureaucratic behavior, as anyone who is making money in a particular market does not want the money flow to end.

However, the current defense buildup and weapons sales have more to do with the failure of capitalism during the Great Depression than any
other single factor.  It was not Roosevelt’s New Deal that saved the American economy.  It was World War II that solved the problems of
massive unemployment and economic dislocation caused by the Great Depression.  As Professor Thayer Watkins observes: The statistic
which best represents the social impact of the Depression is the unemployment rate:
Weapons of mass destruction of every type imaginable were developed by the
United States and their former partner in crime, the Soviet Union. Finally, by the
end of the last century we had developed our weapons and the ability to deliver
them to the point where we could destroy the entire surface of the
planet.

Behind all of this “progress” was and is the pursuit of profit. Fear and the lust for
money has been the engines for the arms race and continues to be the key to its’
great ability to survive. This profit motivation for the arms race is an inherent part
of capitalist economies. At the end of the day on the New York Stock Exchange,
how much money you made is your measure of success.
"While the economy recovered somewhat from its state in 1933 the unemployment rate
remained in the 15 percent range for the rest of the decade. The unemployment rate
did not drop from depression levels until the economic impact of World War II was felt.
The high level of demand during that war reduced the unemployment rate to minuscule
levels. While the unemployment rate should be the defining characteristic of economic
depression the standard definition is in term of GDP. The level of production did recover
its previous high level fairly quickly but this was still significantly below what the economy
was capable of producing." 3
After the most expensive and deadliest war in human history, capitalists and politicians
were terrified. Their fear was there would be a new depression even worse then the last
one. This fear of another worldwide depression was rational, well founded and real.
With the end of the World War II, the United States and the former Soviet Union did not
disarm. Instead a permanent war economy was created
where a defense contractor or a military installation was politically placed in every
congressional district. The War on Fascism was replaced with “The War on
Communism”. Thus our war economy is still with us over 50 years after Hitler and Tojo
were defeated.  There is not a community in America that is not directly or indirectly tied
to defense spending for profits or employment. 7 However defense company profits do
not translate to jobs and prosperity for Americans. One common myth is that defense
spending is good for the economy.  
For each dollar spent by the government for military purposes, forty-two fewer cents are available to United States citizens for personal
consumption.  To a considerable extent, therefore, the American public subsidizes what may be unnecessary military spending from its own
pocket. 10

The military-industrial-complex, a popular term coined by President Eisenhower in his now famous farewell address, should more
appropriately be called the military-industrial-labor unions-universities coalition, in short, the defense spending coalition.  This growth in
defense spending has occurred for the same reasons any other quest for more money and power take place in society. It is the normal
push of bureaucratic inertia and the natural growth of organizations. Whether it is the Drug Enforcement Agency, Health and Human Services,
the Social Security Administration or any other government agency or corporate organization, growth is a natural process. With this growth
comes power from the broad based number of individuals that have a vested interested in money being spent on this sector.  

With political roots that trace to the civil war and military installations or industries in every Congressional Districts, this coalition is the
embodiment of political power in America. A journey through the American war factory illustrates the reach and strength of the defense
spending coalition.  And this coalition has created over 700 military bases in 130 countries around the world. Our armed forces circle the
entire planet. Our aircraft carrier battle groups can rain terror on any nation or group of nations. We have created the most powerful military
in the history of the world. We have done this in the name of national security. And with the end of the "War on Communism" the
defense spending coalition now has funding for the rest of this century. Now we have the "War on Terror". 11.

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1. See generally: Warren Ripley, Artillery and Ammunition of the Civil War, 4th rev. ed., 1984
Dean S. Thomas, Cannons: An Introduction to Civil War Artillery, 1985
Thomas S. Dickey and Peter C. George, Field Artillery Projectiles of the American Civil War: Including
a Selection of Navy Projectiles, Fuzes, Hand Grenades Rockets, and Land Mines, rev. ed., 1993  
On the web see:
www.cwartillery.org/aguns.html
Jack W. Melton and Lawrence E. Pawl, A Guide to Civil War Artillery Projectiles, 1996

2. Source: "The Civil War, Strange and Fascinating Facts," by Burke Davis
See also, Numbers of Americans Killed/Wounded, by Action at: Americans Killed in Action, Numbers,
American War Library  At least 618,000 Americans died in the Civil War, and some experts say the toll reached 700,000. The
number that is most often quoted is 620,000. At any rate, these casualties exceed the nation's loss in all its other wars, from the Revolution
through Vietnam.

3.  See The Recovery from the Depression of the 1930s by Thayer Watkins at
http://www.sjsu.edu/faculty/watkins/recovery.htm

4.  Geoffrey H. Moore, Business Cycles, Inflation, and Forecasting, (Cambridge, Mass: Ballinger,
1980), page 440 at: The Great Depression
http://ingrimayne.saintjoeedu/econ/EconomicCatastrophe/GreatDepression.html

5.  See: The Reds: A Short History of Communism in America

6.  Radio address of President Franklin D. Roosevelt, 1938 at: An Outline of American History

7.  Three of the best sites on the internet which explain the reach and extent of the military
industrial complex are: Foreign Policy In Focus,  Federation of American Scientists and Center for
Defense Information.

8.  Ibid.

9.  The Boston Study Group, The Price of Defense Times Book Co., Three Park Ave., New York,
N.Y. 1979

10.  Charles W. Kegley, Jr. and Eugene R. Wittkopf American Foreign Policy, Patter and Process. St.
Martin Press Inc. New York, 1979 at p.194

11.  See, "An Internet Guide to American Military Bases Around the World" online at" http://www.libsci.
sc.edu/bob/class/clis734/webguides/milbase.htm And "America's Empire of Bases" by Chalmers Johnson online at:
www.commondreamsorg/views04/0115-08.htm
As technology and the industries of the country advanced the weapons became
more complex and expensive. Since the United States Civil War was the world’s
first modern industrial war, the casualties were truly horrific. As civil war scholar
Burke Davis explains: At least 618,000 Americans died in the Civil War, and some
experts say the toll reached 700,000. The number that is most often quoted is
620,000. At any rate, these casualties exceed the nation's loss in all its other
wars, from the Revolution through Vietnam. 2

As the world’s population increased and countries industrialized, the weapons and
casualties increased from the tens of thousands in the American Civil War, (the
world’s first industrial war), to the tens of millions in World Wars One and Two.
Improvements in man’s ability to kill are limited only by the imagination. Come
1945 at the end of World War II we had finally harnessed the power of the atom
for war.
As the world’s population increased and countries
industrialized, the weapons and casualties increased
from the tens of thousands in the America Civil War,
(the world’s first industrial war), to the tens of millions in
World Wars One and Two.  Improvements in man’s
ability to kill are limited only by the imagination. Come
1945 at the end of World War II we had finally
harnessed the power of the atom for war.
The largest conflict in the brief history of the world mobilized the entire labor and material resources of our now industrialized country.  Ending
the worldwide Great Depression was important for several reasons:
-Unemployment in the United States at the height of the Great Depression was
approximately 25%. At the worst point of the Great Depression, in 1933, one in four
Americans who wanted to work was unable to find a job. It was not until 1941, when
World War II was underway, that the official unemployment rate finally fell below 10%.
-The agricultural sector of the economy collapsed with farm prices falling from over
supply and very little demand.
-Banks were failing and people did not have confidence in our financial institutions.
-Business profits were smothered during the Great Depression with tens of thousands
of companies failing. 4
-Millions of people worldwide turned to the extremes on the political spectrum with
fascism and communism for hope from the failures of capitalism. 5 In the words of our
great president Franklin D. Roosevelt: "Democracy has disappeared in several other
great nations, not because the people of those nations disliked democracy, but because
they had grown tired of unemployment and insecurity, of seeing their children hungry
while they sat helpless in the face of government confusion and government weakness
through lack of leadership....Finally, in desperation, they chose to sacrifice liberty in the
hope of getting something to eat. We in America know that our democratic institutions
can be preserved and made to work. But in order to preserve them we need...to prove
that the  practical operation of democratic government is equal to the task of protecting
the security of the people…The people of America are in agreement in defending their
liberties at any cost, and the first line of the defense lies in the protection of economic
security". 6
The truth is it is one of the worst types of government spending. Granted military
spending provides some jobs. Presently, approximately two percent of our labor
force works in the defense sector.  This is down considerably from the wartime
employment of World War II where twenty percent of the nation’s civilian labor
force was devoted to fighting fascism. 8

The labor pool in the defense sector is paid for producing and operating tanks,
ships, plane and rockets which, at best, never be used, and at worst destroy a
great part of humanity. These military items do not add to the pool of goods and
services that satisfy ordinary needs and desires, nor do they have the productive
effects of schools and hospitals, or civilian factories- investments that help to
create further goods and services.

The Boston Study Group, in their excellent report, “The Price of Defense” pointed
out prior to the Reagan military buildup, “[g]overnment military spending, which
creates demand without either creating supply to satisfy that demand, or taxing to
remove the demand, feeds on inflation which
cannot be cured even by recession.” 9