War Profiteering
Before delving directly into the discussion, it is imperative to note that there is a vast body of literature that is made out of controversies, criticisms and comments that have come together over time. Numerous books have been written on the subject and there are countless publications based on the moral and ethical indecency of profiting from war. However, when browsing through this expanse of literature, one cannot help but come across this particular statement of Theodore Roosevelt.
In strict confidence... I should welcome almost any war, for this country needs one (Dionisi, 2005, p. 78).
It is apparent from this statement by Theodore Roosevelt that there is a considerable degree of relevance to war that goes to waste without credit. While the man himself was known for one who reveled in testing the United States war machine in order to ensure that it was always performing beyond perfection (Roosevelt Auchincloss, 2004), the statement above appears to be one that is free of any inclinations to prove the strength of an army and is one in which the very concept of war is realized in a light similar to the one this paper has adopted.
The development of defense systems is an activity that goes on at all times. Developed economies as well as developing economies continue to give an increasing degree of concern to the acquisition of military superiority in order to sustain defenses. It is important to note that the purpose of this paper is not to judge the morality of the issue but to highlight the fact that funds that are being directed by the United States towards the development and sustenance of weaponry would not have been directed to any other objective if the US was not at war (Hossein-Zadeh, 2007). These funds would still have been used in the war in light of the growing relevance of defense systems.
Proof of this statement can be found in the fact that the proportion of the current US budget being sanctioned for the Pentagon is one that comes forth as the largest share of the US budget even if one was to put aside the budget being sanctioned for the war effort in Iraq and Afghanistan.
It is imperative to note that the direction of concern towards war to explain increased profiteering is a move that is far from reasonable since it is not the war that is causing the channeling of funds to organizations to allow them to carry out war profiting but the intention of establishing a reliable defense. The war itself therefore, is nothing more than a byproduct of the threat to peace and safety. War proofing is not coming about as a result of the war, but as a result of the mechanisms of society that are put into place in response to war. These mechanisms of society are the response to the threat to safety and security of which war is a supplementing form.
Perhaps no other period of time has been one in which inventions and innovations have come forth with a rapidity like one in which a war was expected or was at hand (Fuller Sondhaus, 2007). War serves to cause acceleration in technological spurts while allowing society to focus on areas where the attention is truly needed. By stripping society of the luxury of impulsive channeling of resources, war helps society prioritize its agendas. It is imperative to also note that the desperation and hardships that are often created as a result of war cause the people to function to the best of their abilities. Every citizen and non-citizen attempts to make a contribution and it is for the same reason that the society experiences a sharp increase in productivity.
The phrase Wartime Economy has frequently been visited by critics of the funds channeled towards war efforts and defense buildups. It is important to realize when considering war profits in this light that war does not simply increase the rapidness with which funds are transferred to development but the pace of the development of the society as well. A war time economy therefore is one that develops rapidly and with a motivation to ensure that the state is strong and unchallengeable.
While war may come across as a violent and unwanted act with disastrous consequences but this does not serve to change the fact that war serves as a very strong stimulant for the development of society. As a result of the urgency that the war environment creates, it becomes imperative for society to function at the peak of its productivity and effectiveness. In the attempts that the society makes to do so, it eventually comes to a point where it begins to make developments and discoveries that are virtually beyond its current standing in time. It is not uncommon for war time development efforts to bring forth products and services that have a latent demand and become extremely useful in the future.
War time efforts serve to bring society closer as a unit since attention that was previously being channeled towards criticism and towards the internal system then begins to get diverted towards the maintenance of the state in a larger sense. Patriotism rises and people begin t denounce acts of internal corruption all the more severely. As a result, an internal cleansing of sorts takes place whereby the desire to survive supersedes the desire to make profits or satisfy ulterior motives.
Another aspect to realize in this perspective is that regardless of the state being at war or not, there is a strong need to realize that war time is not the only time when an economy prepares for battles and readies its defenses. In contrast, the defense building mechanism continues to function regardless of the fact and elements such as intelligence remain in active play. It is because of the same reason that funding and revenue generation in companies that constitute the defense industry remains in play in peace in a manner that one would expect to see prevalent during the war time.
The government needs to equip its soldiers with the extra gear and munitions needed in order to win the war. Corporations win contracts to supply boots, and bombs and vehicles to the army If the preparations for war are large enough, large numbers of workers will be hired reducing the unemployment rate. Other workers may need to be hired to cover reservists in private sector jobs who get sent overseas. With the unemployment rate down we have more people spending again and people who had jobs before will be less worried about losing their job in the future so theyll spend more than they did. This extra spending will help the retail sector, who will need to hire extra employees causing unemployment to drop even further (Moffatt, 2009).
This trend occurs because war is a stage of a societys transition from one stage to another and while war is the most violent stage, it is one that comes at the very end of a lengthy process of development and preparation. It is therefore irrelevant to consider war as the singular reason for the profiteering of companies who deal in products and services designed for the war.
Companies such as Lockheed Martin and the like are subjected to extensive criticism during war times on account of their increased involvement in the war and the profits that they make from it as a result. What critics forget is that companies such as these are successful during the war only because the military relies on them in peace time as well. This is so because these companies such as these do not simply serve to supply the military with the equipment needed to fight but also with the understanding needed to prepare for the fight. Lockheed martin and other similar companies are pioneers in Research and Development in their areas and it is for the same reason that they remain operational and in full swing in the peace time as well. On the same grounds, coordination and business dealing between the military and such companies remains just as active in peace time as it does in the war.
It is imperative to note at this point that to compare the benefits of war with the disaster that war brings on was not the purpose of this paper. This paper does not, by any means, indicate or imply that war should be sought out and engaged in. The morality of war in itself is an element that is denounced by this paper as it is by society. The singular purpose of this paper was to show that economics and social infrastructure do not always suffer as a result of war and in certain cases war can come forth as a stimulant in the development of the society.
The recent economic recession has brought about times where there is an increased need for concentration and the channeling of funds to the area that merits the funds and resources the most. The war on terror combined with this scenario has served to create circumstances where it has become commonplace to criticize profiteers in these difficult times. However, war profiteers, as can be seen from the above discussion, should not be subjected to this criticism since their movements in the economy during peace time are the same as they are during the war time and it is therefore unjustified to direct the criticism towards them.