Global Research
The Soaring Profits of the Military-Industrial Complex, The Soaring Costs of Military Casualties
Introduction
War Profits
In the face of rising domestic pressure to reduce the budget deficit and cut military spending, the US military-industrial complex and its Zionist accomplices are fighting to retain their share by eliminating programs designed to serve the health needs of active and retired soldiers. Soaring disability costs related to the recent wars will continue for decades. Veteran health care costs are expected to double to 15% of the defense budget in the next five years. The huge public cost of caring for soldiers and veterans means “bad news for defense stocks” according to financial analysts (Barron’s, 6/9/14, p. 19).
There are two major
beneficiaries of the two major wars launched by the US government: one
domestic and one foreign. The three major domestic arms manufacturers,
Lockheed Martin (LMT), Northrop Grumman (NOG) and Raytheon (RTN) have
delivered record-shattering returns to their investors, CEOs and
investment banks during the past decade and a half. The Israeli regime
is the overwhelming foreign beneficiary of the war, expanding its
territory through its dispossession of Palestinians and positioning
itself as the regional hegemon. Israel benefited from the US invasion
which destroyed Iraq, a major ally of the Palestinians; the invasion
provided cover for massive Israel’s settler expansion in the Occupied
Palestinian territories. In the course of its invasion and occupation
Washington systematically destroyed Iraq’s armed forces and civil
infrastructure, shredding its complex modern society and state. By doing
so, the US occupation removed one of Israel’s major regional rivals.
In terms of cost to the United
States, hundreds of thousands of soldiers who had served in the war
zones have sustained severe physical and mental injuries, while
thousands have died directly or indirectly through an epidemic of
soldier suicides. The invasion and occupation of Iraq has cost the
United States trillions of dollars and counting. Despite the immense
costs to the American people, the military-industrial complex and the
pro-Israel power configuration continue to keep the US government on a
wartime economy – undermining the domestic social safety net and
standard of living of many millions.
No peaceful economic activity
can match the immense profits enjoyed by the military-industrial complex
in war. This powerful lobby continues to press for new wars to sustain
the Pentagon’s huge budget. As for the pro-Israel power configuration,
any substantive diplomatic peace negotiations in the Middle East would
end their naked land grabs, reduce or curtail new weapons transfers and
undermine pretexts to sanction or attack countries, like Iran, that
stand in the way of Tel Aviv’s vision of “Greater Israel”, unrivaled in
the region.
The costs of almost 15 years of
warfare weigh heavily on the US Treasury and electorate. The wars have
been dismal failures if not outright defeats. New sectarian conflicts
have emerged in Syria, Iraq and, now, Ukraine – opportunities for the US
arms industry and the pro-Israel lobbies to make even greater profits
and gain more power.
The on-going horrendous costs of past and continuing wars make the
launch of new military interventions more difficult for US and Israeli
militarists. The US public expresses wide-spread discontent over the
burden of the recent past wars and shows even less stomach for new wars
to profit the military-industrial complex and further strengthen Israel.War Profits
The power and influence of the
military-industrial complex in promoting serial wars has resulted in
extraordinary rates of profit. According to a recent study by Morgan
Stanley (cited in Barron’s, 6/9/14, p. 19), shares in the major US arms
manufacturers have risen 27,699% over the past fifty years versus 6,777%
for the broader market. In the past three years alone, Raytheon has
returned 124%, Northrup Grumman 114% and Lockheed Martin 149% to their
investors.
The Obama regime makes a grand
public show of reducing the military budget via the annual appropriation
bill, and then, turns around and announces emergency supplemental funds
to cover the costs of these wars. . .thereby actually increasing
military spending, all the while waving the banner of ‘cost cutting’.
Obama’s theatrics have fattened the profits for the US
military-industrial complex.
War profits have soared with the
series of military interventions in the Middle East, Africa and South
Asia. The arms industry lobbyists pressure Congressional and Pentagon
decision-makers to link up with the pro-Israel lobby as it promotes even
deeper direct US military involvement in Syria, Iraq and Iran. The
growing ties between Israeli and US military industries reinforce their
political leverage in Washington by working with liberal
interventionists and neo-conservatives. They attack Obama for not
bombing Syria and for his withdrawal of troops from Iraq and
Afghanistan. They now clamor for sending US troops back to Iraq and call
for intervention in Ukraine. Obama has argued that proxy wars without
direct US troop involvement do not require such heavy Pentagon
expenditures as the arms industry demands. The Obama regime has
presented the withdrawal from Iraq and Afghanistan as a necessary step
to reduce US financial and military losses. This was in response to Wall
Street’s pressure to cut the budget deficit. Obama’s attempt to meet
the demands of the US financial sector has come at the price of cutting
potential profit for the military industrial complex as well as
infuriating Israel and its fanatical supporters in the US Congress.
The Fight over the Military Budget: Veterans versus the Complex and the LobbyIn the face of rising domestic pressure to reduce the budget deficit and cut military spending, the US military-industrial complex and its Zionist accomplices are fighting to retain their share by eliminating programs designed to serve the health needs of active and retired soldiers. Soaring disability costs related to the recent wars will continue for decades. Veteran health care costs are expected to double to 15% of the defense budget in the next five years. The huge public cost of caring for soldiers and veterans means “bad news for defense stocks” according to financial analysts (Barron’s, 6/9/14, p. 19).
This is reason why the arms
industries promote the closure of scores of Veterans Administration
hospitals and a reduction in retiree benefits, using the pretext of
fighting fraud, incompetence and poor quality service compared with the
‘private sector’. The same corporate warlords and lobbyists who clamor
to send US troops to back to Iraq and to new wars in Syria and Ukraine,
where young lives, limbs and sanity are at great risk, are also in the
forefront of a fight to slash funding for the veterans’ medical care.
Economists have long noted that the more dollars spent on veterans’ and
military retirees’ health care, the less allocated for war materials,
ships and aircraft. Today it is estimated that over $900 billion dollars
will have been spent on long-term VA medical and disability services
for veterans of the wars in Afghanistan and Iraq. That number is clearly
set to rise with each new intervention.
The corporate warlords are
urging Congress to increase co-pays, enrollment fees and deductibles for
veterans, retirees and active duty personnel enrolled in military
health insurance plans, such as Tricare, as well as limiting access to
the VA.
The fight over Pentagon expenditures is a struggle over war or social
justice: health services for troops and veterans versus weapons
programs that fatten corporate profits for the arms industry.Related content:
Disclaimer: The contents of this article are of sole
responsibility of the author(s). The Centre for Research on
Globalization will not be responsible for any inaccurate or incorrect
statement in this article. The Center of Research on Globalization
grants permission to cross-post original Global Research articles on
community internet sites as long as the text & title are not
modified. The source and the author's copyright must be displayed. For
publication of Global Research articles in print or other forms
including commercial internet sites, contact: publications@globalresearch.ca
www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.
For media inquiries: publications@globalresearch.ca
www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.
For media inquiries: publications@globalresearch.ca
Copyright © Prof. James Petras, Global Research, 2014
Introduction
War Profits
In the face of rising domestic pressure to reduce the budget deficit and cut military spending, the US military-industrial complex and its Zionist accomplices are fighting to retain their share by eliminating programs designed to serve the health needs of active and retired soldiers. Soaring disability costs related to the recent wars will continue for decades. Veteran health care costs are expected to double to 15% of the defense budget in the next five years. The huge public cost of caring for soldiers and veterans means “bad news for defense stocks” according to financial analysts (Barron’s, 6/9/14, p. 19).
There are two major
beneficiaries of the two major wars launched by the US government: one
domestic and one foreign. The three major domestic arms manufacturers,
Lockheed Martin (LMT), Northrop Grumman (NOG) and Raytheon (RTN) have
delivered record-shattering returns to their investors, CEOs and
investment banks during the past decade and a half. The Israeli regime
is the overwhelming foreign beneficiary of the war, expanding its
territory through its dispossession of Palestinians and positioning
itself as the regional hegemon. Israel benefited from the US invasion
which destroyed Iraq, a major ally of the Palestinians; the invasion
provided cover for massive Israel’s settler expansion in the Occupied
Palestinian territories. In the course of its invasion and occupation
Washington systematically destroyed Iraq’s armed forces and civil
infrastructure, shredding its complex modern society and state. By doing
so, the US occupation removed one of Israel’s major regional rivals.
In terms of cost to the United
States, hundreds of thousands of soldiers who had served in the war
zones have sustained severe physical and mental injuries, while
thousands have died directly or indirectly through an epidemic of
soldier suicides. The invasion and occupation of Iraq has cost the
United States trillions of dollars and counting. Despite the immense
costs to the American people, the military-industrial complex and the
pro-Israel power configuration continue to keep the US government on a
wartime economy – undermining the domestic social safety net and
standard of living of many millions.
No peaceful economic activity
can match the immense profits enjoyed by the military-industrial complex
in war. This powerful lobby continues to press for new wars to sustain
the Pentagon’s huge budget. As for the pro-Israel power configuration,
any substantive diplomatic peace negotiations in the Middle East would
end their naked land grabs, reduce or curtail new weapons transfers and
undermine pretexts to sanction or attack countries, like Iran, that
stand in the way of Tel Aviv’s vision of “Greater Israel”, unrivaled in
the region.
The costs of almost 15 years of
warfare weigh heavily on the US Treasury and electorate. The wars have
been dismal failures if not outright defeats. New sectarian conflicts
have emerged in Syria, Iraq and, now, Ukraine – opportunities for the US
arms industry and the pro-Israel lobbies to make even greater profits
and gain more power.
The on-going horrendous costs of past and continuing wars make the
launch of new military interventions more difficult for US and Israeli
militarists. The US public expresses wide-spread discontent over the
burden of the recent past wars and shows even less stomach for new wars
to profit the military-industrial complex and further strengthen Israel.War Profits
The power and influence of the
military-industrial complex in promoting serial wars has resulted in
extraordinary rates of profit. According to a recent study by Morgan
Stanley (cited in Barron’s, 6/9/14, p. 19), shares in the major US arms
manufacturers have risen 27,699% over the past fifty years versus 6,777%
for the broader market. In the past three years alone, Raytheon has
returned 124%, Northrup Grumman 114% and Lockheed Martin 149% to their
investors.
The Obama regime makes a grand
public show of reducing the military budget via the annual appropriation
bill, and then, turns around and announces emergency supplemental funds
to cover the costs of these wars. . .thereby actually increasing
military spending, all the while waving the banner of ‘cost cutting’.
Obama’s theatrics have fattened the profits for the US
military-industrial complex.
War profits have soared with the
series of military interventions in the Middle East, Africa and South
Asia. The arms industry lobbyists pressure Congressional and Pentagon
decision-makers to link up with the pro-Israel lobby as it promotes even
deeper direct US military involvement in Syria, Iraq and Iran. The
growing ties between Israeli and US military industries reinforce their
political leverage in Washington by working with liberal
interventionists and neo-conservatives. They attack Obama for not
bombing Syria and for his withdrawal of troops from Iraq and
Afghanistan. They now clamor for sending US troops back to Iraq and call
for intervention in Ukraine. Obama has argued that proxy wars without
direct US troop involvement do not require such heavy Pentagon
expenditures as the arms industry demands. The Obama regime has
presented the withdrawal from Iraq and Afghanistan as a necessary step
to reduce US financial and military losses. This was in response to Wall
Street’s pressure to cut the budget deficit. Obama’s attempt to meet
the demands of the US financial sector has come at the price of cutting
potential profit for the military industrial complex as well as
infuriating Israel and its fanatical supporters in the US Congress.
The Fight over the Military Budget: Veterans versus the Complex and the LobbyIn the face of rising domestic pressure to reduce the budget deficit and cut military spending, the US military-industrial complex and its Zionist accomplices are fighting to retain their share by eliminating programs designed to serve the health needs of active and retired soldiers. Soaring disability costs related to the recent wars will continue for decades. Veteran health care costs are expected to double to 15% of the defense budget in the next five years. The huge public cost of caring for soldiers and veterans means “bad news for defense stocks” according to financial analysts (Barron’s, 6/9/14, p. 19).
This is reason why the arms
industries promote the closure of scores of Veterans Administration
hospitals and a reduction in retiree benefits, using the pretext of
fighting fraud, incompetence and poor quality service compared with the
‘private sector’. The same corporate warlords and lobbyists who clamor
to send US troops to back to Iraq and to new wars in Syria and Ukraine,
where young lives, limbs and sanity are at great risk, are also in the
forefront of a fight to slash funding for the veterans’ medical care.
Economists have long noted that the more dollars spent on veterans’ and
military retirees’ health care, the less allocated for war materials,
ships and aircraft. Today it is estimated that over $900 billion dollars
will have been spent on long-term VA medical and disability services
for veterans of the wars in Afghanistan and Iraq. That number is clearly
set to rise with each new intervention.
The corporate warlords are
urging Congress to increase co-pays, enrollment fees and deductibles for
veterans, retirees and active duty personnel enrolled in military
health insurance plans, such as Tricare, as well as limiting access to
the VA.
The fight over Pentagon expenditures is a struggle over war or social
justice: health services for troops and veterans versus weapons
programs that fatten corporate profits for the arms industry.Related content:
Disclaimer: The contents of this article are of sole
responsibility of the author(s). The Centre for Research on
Globalization will not be responsible for any inaccurate or incorrect
statement in this article. The Center of Research on Globalization
grants permission to cross-post original Global Research articles on
community internet sites as long as the text & title are not
modified. The source and the author's copyright must be displayed. For
publication of Global Research articles in print or other forms
including commercial internet sites, contact: publications@globalresearch.ca
www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.
For media inquiries: publications@globalresearch.ca
www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.
For media inquiries: publications@globalresearch.ca
Copyright © Prof. James Petras, Global Research, 2014
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