
"I've found the job where I fit best!" - Artist: George Roppe
Anyone who was here state side during WWII can tell you of the rationing that went on. Everything was rationed. From bread to tires. They can also tell you that no matter what industry you were in, you were doing defense work. WWII took this country from nearly 30% unemployment to 0 unemployment over night. New businesses formed overnight to meet the demands. Struggling businesses like Willys Motors became major contractors.
There were factories and corporations making each other’s products to meet the demand of the military. RCA, Stromberg Carlson, and Bendix all making the same radios. Willys and Ford made the Jeeps. Whole towns grew up from nothing to support new ship and arms factories. One could say that nearly every corporation became a wholly owned subsidiary of USA Inc. The technology of the time expanded at a breakneck pace and the war paid for nearly all of it.
When WWII came to an end in 1945 the so called Cold War against what was called Communism began as well as a new war to fight it. Korea and the cold war kept many of these plants humming right along. And new defense systems needed new advances which meant lots of dollars for research and development and nearly all of it paid for by Uncle Sam. Working for a defense contractor – and at that time nearly all the major corporations were defense contractors – meant you could get whatever new and necessary equipment you needed to advance your project. And a lot of this R&D made its way to the products that were sold to the general public as well.
Pretty sweet deal wouldn’t you say? Putting a good part of your research staff’s overhead on the government’s bill. And if the US military stopped being interested, you could also sell it to France or Egypt or Iran or Iraq or Israel or some South American country. And nearly every technical advance we saw had its origin or was advanced in some way through military material need – and I include NASA here . From television – improved for WWII, to computers – ENIAC for WWII became IBM.
Very few people complained about the merger of government and industry except President Eisenhower who used the euphemistic term Military Industrial Complex. Actually a form of codependency, where the US needed this arrangement just as much as industry did.
Reagan attempted to break it up after the fall of the Soviet Union but it was by then far to ingrained and in fact still flourishes as can be seen by this list of the top 20 contractors. Here is a PDF that goes into even greater detail.
And by what we have learned from Matt Taibbi and Yves Smith and others, this compact has been expanded to include the finance arena as well. With the Federal Reserve and Treasury’s union with Wall Street.
To look on this as separate entities to me seems just a but naive. We complain about the revolving door in Washington but to me it simply looks like intra-office advancement. Is it any wonder that there is little interest in Washington to change any of this ? That both parties like the idea of a corporate/government arrangement.



25 Comments

Getting government contract work was fairly easy especially if there was a military base nearby. I worked for a while for a very small company that did 80% contract work.
My grandfather worked for years for a company that did nothing but missile guidance systems. My uncle was a head research chemist for a large company and at least 50% of what he worked on was government contracts.
Nearly all college and university research is defense related. The Center for Research in Electro Optics and Lasers (CREOL) at the university I worked for is primarily defense related work, so you have to be security cleared to enter most of it.
If you want to understand what we are up against you would be wise to read Post-Soviet Lessons for a Post-American Century by Dmitry Orlov. About a two thirds of the way down is the section Similarities between the Superpowers.
It gives a good insight into how we came to mimic the same kind of political/economic paradigm the Soviets used and why it is as difficult now for any but the two main parties to get elected as it is for other parties in Russia now.
Yes, I’ve been coming to the realization for some time that we don’t actually have a government, as is, a body whose purpose is to govern *people*. It is run as a corporate department for corporate ends — ensure revenues, soak up costs, provide protection.
And I have been wondering how it is that profit came to be the unquestioned raison d’etre for human activity in a supposed democracy. It is only recently that I realized how undemocratically work is organized. Why, in a country that regularly elects everyone from dog-catcher to president, why don’t workers think that they should elect their bosses?
Oh, rec’d, and nice pic.
Thanks. I think a telling item in all of this is having elder statesman, “Papa Bush” saying “Who the hell is Grover Norqist ?” A real kick in the nutz to the tea party.
Those that screamed about this always used the arguments of “Unfair competition.” and “The government never does anything right.”
Well the private sector has been doing unfair competition for years with monopolies and price fixing and abuse of the copywrite and patent laws.
And for the government not doing anything right, it must have been doing something right cause an awful lot of people got very rich off of government contracts.
“We complain about the revolving door in Washington but to me it simply looks like intra-office advancement.”
I believe the term you’re looking for is fascism. Or as Mr. Mussolini said..”Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power.”
I wasn’t around during the Cold War but it seems consuming the population in fear may have been the most profitable aspect for those in control. I could see some men in black suits licking their lips over the ‘threat’ of China. Perhaps the only thing that could stop another cold war would be our collapsing economy.
I was trying to avoid the term fascism because most fascist states are dictatorships with no illusion or pretense of democracy.
This is closer to what they had in the Soviet Union where you had “elections” but could only vote for the candidates the “party(s)” had already chosen for you.
on edit: Actually very close President Harry Truman’s Executive Order 9835 initiated a program of loyalty reviews for federal employees in 1947 and if you failed these reviews, you could not get employed anywhere. You were essentially black listed.
Not to quibble, but Reagan didn’t try to “break up” anything. Reagan not only didn’t have the intellectual capacity to discern how and why the Pentagon procurement system was set up to subsidize high-tech industry, he wouldn’t have cared if somebody had managed to explain it to him.
Seymour Melman, former professor emeritus of industrial engineering at Columbia and a devastating critic of US defense spending, began sounding the alarm bell in the mid-70′s when he wrote “The Permanent War Economy”. He was ignored, of course…and now the corporate takeover is complete.
Ahh, I do understand, thanks for clearing it up.
One more thought. From what I understand the incubmancy rate for the USSR was in the upper 90% for their ‘elections’, and ours is somewhere in the 90% range as well. Coincidence, hopeful/ignorant population, or parallel?
“…and now the corporate takeover is complete.”
you got that right.
They applaud the same magicians and kabuki dancers.
But I digress.
If the general population were to ever see this country as it actually is, they would chase everyone in Capital Hill up a tree and set fire to it.
YEs.
Liberal and progressive political discourse in this country has become so neutered, bloodless, and ineffectual, that the term “fascism” has all but disappeared. Good little libs and pwogs are afraid using the term will make them seem unreasonable; gosh, NPR would never use that term! Most of our best writers are reluctant to go there. I don’t recall the term figuring significantly in Occupy discourse.
I know it’s just a word, but if we can’t accurately describe the situation we’re in, we’re pissing in the wind. Thousands of posts here and on other left sites could be summed up as “oh, yeah, the US is a fascist country,” but the term is rarely, if ever, used, because the writers apparently don’t want to appear “unreasonable.”
We’ve been a fascist state for decades. Ike clearly saw what was emerging. The coup on the 35th President sealed the deal (woops, I’m being unreasonable). What has happened since 9/11 is that we’ve become a police state, as well, so the US best described as a facist police state. It is still a soft police state, but as the writers at fdl document, it is ever-increasing.
“we’re pissing in the wind.”
twobeers, that’s pissing into the wind. Otherwise you hit the nail right on the head.
Thnaks
Recommended, cmauk. I started to laugh at your comment about the chasing up and setting fire to trees, but couldn’t. They deserve it. I’d like to drag them out of their offices and into the street and pelt them with rotten eggs. Metaphorically, of course.
Thanks….OY…did not even know I was front paged even. WOW
But just my meager attempt at bringing the reality of how we got here to the attention of those who might not know or possibly forgotten.
To understand the present one must know and accept the past as it really was.
Congrats
. You do good work.
nice concise explanation of how we got from there to here. recommended.
“And by what we have learned from Matt Taibbi and Yves Smith and others, this compact has been expanded to include the finance arena as well.”
Big finance is now the dominant party in this arrangement.
“If the general population were to ever see this country as it actually is, they would chase everyone in Capital Hill up a tree and set fire to it.”
Couldn’t agree more
And this just in from Alternet.
Dangerous it is to study too closely the arts of the enemy.
That term is occupied.
Comrade cmauk, you are called to account for “Reagan attempted to break it up”. The story goes that the Reaganaut tried to trade down commie nukes, but I hadn’t heard that he went after the MIC. Please attend your defense.
Also (wikipedia):
Is it the US or “industry” which is pathological in your diagnosis?