Why the US Is Not Leaving Iraq: The booming business of war profiteers

[laststeamtrain]

Why the US Is Not Leaving Iraq: The booming business of war profiteers

by Prof. Ismael Hossein-zadeh

<snip>

The rise of the fortunes of the major Pentagon contractors can be measured, in part, by the growth of the Pentagon budget since President George W. Bush arrived in the White House: it has grown by more than 50 percent, from nearly $300 billion in 2001 to almost $455 billion in 2007. (These figures do not include the Homeland Security budget, which is $33 billion for the 2007 fiscal year alone, and the costs of the wars in Iraq and Afghanistan, which are fast approaching $400 billion.)

Large Pentagon contractors have been the main beneficiaries of this windfall. For example, a 2004 study by The Center for Public Integrity revealed that, for the 1998–2003 period, one percent of the biggest contractors won 80 percent of all defense contracting dollars. The top ten got 38 percent of all the money. Lockheed Martin topped the list at $94 billion, Boeing was second with $81 billion, Raytheon was third (just under $40 billion), followed by Northrop Grumman and General Dynamics with nearly $34 billion each.<2>

Fantastic returns to these armaments conglomerates have been reflected in the continuing jump in the value of their shares or stocks in the Wall Street: "Shares of U.S. defense companies, which have nearly trebled since the beginning of the occupation of Iraq, show no signs of slowing down. . . . All the defense companies—with very few exceptions—have been doing extremely well with mostly double-digit earnings growth. . . . The feeling that makers of ships, planes and weapons are just getting into their stride has driven shares of leading Pentagon contractors Lockheed Martin Corp., Northrop Grumman Corp., and General Dynamics Corp. to all-time highs. . . ."<3>

<snip>

The fact that powerful beneficiaries of war dividends flourish in an atmosphere of war and international convulsion should not come as a surprise to anyone. What is surprising is that, in the context of the recent US wars of choice, these beneficiaries have also acquired the power of promoting wars, often by manufacturing "external threats to our national interest." In other words, profit-driven beneficiaries of war have also evolved as war makers, or contributors to war making.<9>

The following is a sample of such unsavory business–political relationships, as reported by Walter F. Roche and Ken Silverstein in a 14 July 2004 Los Angeles Times article, titled "Advocates of War Now Profit from Iraq’s Reconstruction:"

• Former CIA Director R. James Woolsey is a prominent example of the phenomenon, mixing his business interests with what he contends are the country's strategic interests.

• Neil Livingstone, a former Senate aide who has served as a Pentagon and State Department advisor and issued repeated public calls for Hussein's overthrow. He heads a Washington-based firm, GlobalOptions, Inc. that provides contacts and consulting services to companies doing business in Iraq.

<more>

http://www.globalresearch.ca/index.php?context=viewArticle&code=HOS20070112&articleId=4423