Although Eisenhower’s reference to the military-industrial complex is by now well known, his warning against its “unwarranted influence” has, I believe, largely been ignored. Since 1961, there has been too little serious study, or discussion, of the origins of the military-industrial complex, how it has changed over time, how governmental secrecy has hidden it from oversight by members of Congress or attentive citizens, and how it degrades our constitutional structure of checks and balances.
From its origins in the early 1940s, when President Franklin Delano Roosevelt was building up his “arsenal of democracy,” down to the present moment, public opinion has usually assumed that it involved more or less equitable relations—often termed a “partnership”—between the high command and civilian overlords of the United States military and privately owned, for-profit manufacturing and service enterprises. Unfortunately, the truth of the matter is that from the time they first emerged, these relations were never equitable.
In the formative years of the military-industrial complex, the public still deeply distrusted privately owned industrial firms because of the way they had contributed to the Great Depression. Thus, the leading role in the newly emerging relationship was played by the official governmental sector. A deeply popular, charismatic president, FDR sponsored these public-private relationships. They gained further legitimacy because their purpose was to rearm the country, as well as allied nations around the world, against the gathering forces of fascism. The private sector was eager to go along with this largely as a way to regain public trust and disguise its wartime profit making.
In the late 1930s and early 1940s, Roosevelt’s use of public-private “partnerships” to build up the munitions industry, and thereby finally overcome the Great Depression, did not go entirely unchallenged. Although he was himself an implacable enemy of fascism, a few people thought that the president nonetheless was coming close to copying some of its key institutions. The leading Italian philosopher of fascism, the neo-Hegelian Giovanni Gentile, once argued that it should more appropriately be called corporatism because it was a merger of state and corporate power.
Some critics were alarmed early on by the growing symbiotic relationship between government and corporate officials because each simultaneously sheltered and empowered the other, while greatly confusing the separation of powers. Since the activities of a corporation are less amenable to public or congressional scrutiny than those of a public institution, public-private collaborative relationships afford the private sector an added measure of security from such scrutiny. These concerns were ultimately swamped by enthusiasm for the war effort and the postwar era of prosperity that the war produced.
Beneath the surface, however, was a less well recognized movement by big business to replace democratic institutions with those representing the interests of capital. This movement is today ascendant. (See Thomas Frank’s book The Wrecking Crew: How Conservatives Rule for a superb analysis of Ronald Reagan’s slogan “Government is not a solution to our problem, government is the problem.”) Its objectives have long been to discredit what it called “big government,” while capturing for private interests the tremendous sums invested by the public sector in national defense. It may be understood as a slow-burning reaction to what American conservatives believed to be the socialism of the New Deal.
Perhaps the country’s leading theorist of democracy, Sheldon S. Wolin, has written in his book Democracy Incorporated about what he calls “inverted totalitarianism”—the rise in the United States of totalitarian institutions of conformity and regimentation shorn of the police repression of the earlier German, Italian, and Soviet forms. He warns of “the expansion of private (i.e., mainly corporate) power and the selective abdication of governmental responsibility for the well-being of the citizenry.” He also decries the degree to which the so-called privatization of governmental activities has insidiously undercut our democracy, leaving us with the widespread belief that government is no longer needed and that, in any case, it is not capable of performing the functions we have entrusted to it.
Wolin writes:
The privatization of public services and functions manifests the steady evolution of corporate power into a political form, into an integral, even dominant partner with the state. It marks the transformation of American politics and its political culture, from a system in which democratic practices and values were, if not defining, at least major contributory elements, to one where the remaining democratic elements of the state and its populist programs are being systematically dismantled.
MERCENARIES AT WORK
The military-industrial complex has changed radically since World War II or even the height of the Cold War. The private sector is now fully ascendant. The uniformed air, land, and naval forces of the country as well as its intelligence agencies, including the CIA, the NSA (National Security Agency), the DIA (Defense Intelligence Agency), and even clandestine networks entrusted with the dangerous work of penetrating and spying on terrorist organizations are all dependent on hordes of “private contractors.” In the context of governmental national security functions, a better term for these might be “mercenaries” working in private for profit-making companies.
Tim Shorrock, an investigative journalist and the leading authority on this subject, sums up this situation devastatingly in his book Spies for Hire: The Secret World of Intelligence Outsourcing. The following quotes are a précis of some of his key findings:
In 2006 . . . the cost of America’s spying and surveillance activities outsourced to contractors reached $42 billion, or about 70 percent of the estimated $60 billion the government spends each year on foreign and domestic intelligence. . . . [The] number of contract employees now exceeds [the CIA’s] full-time workforce of 17,500. . . . Contractors make up more than half the workforce of the CIA’s National Clandestine Service (formerly the Directorate of Operations), which conducts covert operations and recruits spies abroad. . . .
To feed the NSA’s insatiable demand for data and information technology, the industrial base of contractors seeking to do business with the agency grew from 144 companies in 2001 to more than 5,400 in 2006. . . . At the National Reconnaissance Office (NRO), the agency in charge of launching and maintaining the nation’s photoreconnaissance and eavesdropping satellites, almost the entire workforce is composed of contract employees working for [private] companies. . . . With an estimated $8 billion annual budget, the largest in the IC [intelligence community], contractors control about $7 billion worth of business at the NRO, giving the spy satellite industry the distinction of being the most privatized part of the intelligence community. . . .
If there’s one generalization to be made about the NSA’s outsourced IT [information technology] programs, it is this: they haven’t worked very well, and some have been spectacular failures. . . . In 2006, the NSA was unable to analyze much of the information it was collecting. . . . As a result, more than 90 percent of the information it was gathering was being discarded without being translated into a coherent and understandable format; only about 5 percent was translated from its digital form into text and then routed to the right division for analysis.