In the future: Even bigger profits of the Military Industrial Complex (MIC)

Followers of this blog will already know that he giant US weapons-making corporations rule the roost both in Washington and in global war-making. One factor to be added to the nightmare scenario might be the effort to create a weaponized future beyond compare. After all, in the coming decades, the Pentagon is already planning to upgrade its vast nuclear arsenal to the tune of perhaps $2 trillion or more — $756 billion in the next decade alone. And mind you, we’re talking about the country that already has an active stockpile of 4,500 long-range nuclear weapons, with over 1,600 of them deployed — enough weapons, that is, to do in several Planet Earths.

That was before the Congressional Commission on the Strategic Posture of the United States even came up with the brilliant idea that such a “modernization” of U.S. nuclear forces won’t be faintly enough to take us all safely into that future. As the Federation of American Scientists recently reported, that committee is urging this country’s leaders to “prepare to increase its number of deployed warheads, as well as increasing its production of bombers, air-launched cruise missiles, ballistic missile submarines, non-strategic nuclear forces, and warhead production capacity. It also calls for the United States to deploy multiple warheads on land-based intercontinental ballistic missiles (ICBMs) and consider adding road-mobile ICBMs to its arsenal.” All above and beyond the previous madly ambitious nuclear plans (aimed at ending it all in truly high style).

The commission’s report brings to mind Stanley Kubrick’s 1964 classic movie, Dr. Strangelove or: How I Stopped Worrying and Learned to Love the Bomb. The giant corporate arms producers are already having the time of their lives as the planet goes up in still reasonably local flames, most recently in the Middle East. If that commission has its way, however, they can look forward to making an all-too-ultimate fortune off creating yet more weapons to blast us out of this galaxy.

The New York Times headline said it all: “Middle East War Adds to Surge in International Arms Sales.” The conflicts in Gaza, Ukraine, and beyond may be causing immense and unconscionable human suffering, but they are also boosting the bottom lines of the world’s arms manufacturers. There was a time when such weapons sales at least sparked talk of “the merchants of death” or of “war profiteers.” Now, however, is distinctly not that time, given the treatment of the industry by the mainstream media and the Washington establishment, as well as the nature of current conflicts. Mind you, the American arms industry already dominates the international market in a staggering fashion, controlling 45% of all such sales globally, a gap only likely to grow more extreme in the rush to further arm allies in Europe and the Middle East in the context of the ongoing wars in those regions.

In his nationally televised address about the Israel-Hamas and Russia-Ukraine wars, President Biden described the American arms industry in remarkably glowing terms, noting that, “just as in World War II, today patriotic American workers are building the arsenal of democracy and serving the cause of freedom.” From a political and messaging perspective, the president cleverly focused on the workers involved in producing such weaponry rather than the giant corporations that profit from arming Israel, Ukraine, and other nations at war. But profit they do and, even more strikingly, much of the revenues that flow to those firms is pocketed as staggering executive salaries and stock buybacks that only boost shareholder earnings further.

President Biden also used that speech as an opportunity to tout the benefits of military aid and weapons sales to the U.S. economy:

“We send Ukraine equipment sitting in our stockpiles. And when we use the money allocated by Congress, we use it to replenish our own stores, our own stockpiles, with new equipment. Equipment that defends America and is made in America. Patriot missiles for air defense batteries, made in Arizona. Artillery shells manufactured in 12 states across the country, in Pennsylvania, Ohio, Texas. And so much more.”

In short, the military-industrial complex is riding high, with revenues pouring in and accolades emanating from the top political levels in Washington. But is it, in fact, an arsenal of democracy? Or is it an amoral enterprise, willing to sell to any nation, whether a democracy, an autocracy, or anything in between?

Arming Current Conflicts

The U.S. should certainly provide Ukraine with what it needs to defend itself from Russia’s invasion. Sending arms alone, however, without an accompanying diplomatic strategy is a recipe for an endless, grinding war (and endless profits for those arms makers) that could always escalate into a far more direct and devastating conflict between the U.S., NATO, and Russia. Nevertheless, given the current urgent need to keep supplying Ukraine, the sources of the relevant weapons systems are bound to be corporate giants like Raytheon and Lockheed Martin. No surprise there, but keep in mind that they’re not doing any of this out of charity.

Raytheon CEO Gregory Hayes acknowledged as much, however modestly, in an interview with the Harvard Business Review early in the Ukraine War:

“[W]e don’t apologize for making these systems, making these weapons… the fact is eventually we will see some benefit in the business over time. Everything that’s being shipped into Ukraine today, of course, is coming out of stockpiles, either at DoD [the Department of Defense] or from our NATO allies, and that’s all great news. Eventually we’ll have to replenish it and we will see a benefit to the business over the next coming years.”

Hayes made a similar point recently in response to a question from a researcher at Morgan Stanley on a call with Wall Street analysts. The researcher noted that President Biden’s proposed multi-billion-dollar package of military aid for Israel and Ukraine “seems to fit quite nicely with Raytheon’s defense portfolio.” Hayes responded that “across the entire Raytheon portfolio you’re going to see a benefit of this restocking on top of what we think will be an increase in the DoD topline as we continue to replenish these stocks.” Supplying Ukraine alone, he suggested, would yield billions in revenues over the coming few years with profit margins of 10% to 12%.


Beyond such direct profits, there’s a larger issue here: the way this country’s arms lobby is using the war to argue for a variety of favorable actions that go well beyond anything needed to support Ukraine. Those include less restrictive, multi-year contracts; reductions in protections against price gouging; faster approval of foreign sales; and the construction of new weapons plants. And keep in mind that all of this is happening as a soaring Pentagon budget threatens to hit an astonishing $1 trillion within the next few years.

As for arming Israel, including $14 billion in emergency military aid recently proposed by President Biden, the horrific attacks perpetrated by Hamas simply don’t justify the all-out war President Benjamin Netanyahu’s government has launched against more than two million inhabitants of the Gaza Strip, with so many thousands of lives already lost and untold additional casualties to come. That devastating approach to Gaza in no way fits the category of defending democracy, which means that weapons companies profiting from it will be complicit in the unfolding humanitarian catastrophe.

Repression Enabled, Democracy Denied

Over the years, far from being a reliable arsenal of democracy, American arms manufacturers have often helped undermine democracy globally, while enabling ever greater repression and conflict — a fact largely ignored in recent mainstream coverage of the industry. For example, in a 2022 report for the Quincy Institute, I noted that, of the 46 then-active conflicts globally, 34 involved one or more parties armed by the United States. In some cases, American arms supplies were modest, but in many other conflicts such weaponry was central to the military capabilities of one or more of the warring parties.

Nor do such weapons sales promote democracy over autocracy, a watchword of the Biden administration’s approach to foreign policy. In 2021, the most recent year for which full statistics are available, the U.S. armed 31 nations that Freedom House, a non-profit that tracks global trends in democracy, political freedom, and human rights, designated as “not free.”

The most egregious recent example in which the American arms industry is distinctly culpable when it comes to staggering numbers of civilian deaths would be the Saudi Arabian/United Arab Emirates (UAE)-led coalition’s intervention in Yemen, which began in March 2015 and has yet to truly end. Although the active military part of the conflict is now in relative abeyance, a partial blockade of that country continues to cause needless suffering for millions of Yemenis.  Between bombing, fighting on the ground, and the impact of that blockade, there have been nearly 400,000 casualties. Saudi air strikes, using American-produced planes and weaponry, caused the bulk of civilian deaths from direct military action.

Congress did make unprecedented efforts to block specific arms sales to Saudi Arabia and rein in the American role in the conflict via a War Powers Resolution, only to see legislation vetoed by President Donald Trump. Meanwhile, bombs provided by Raytheon and Lockheed Martin were routinely used to target civilians, destroying residential neighborhoods, factories, hospitals, a wedding, and even a school bus.

When questioned about whether they feel any responsibility for how their weapons have been used, arms companies generally pose as passive bystanders, arguing that all they’re doing is following policies made in Washington. At the height of the Yemen war, Amnesty International asked firms that were supplying military equipment and services to the Saudi/UAE coalition whether they were ensuring that their weaponry wouldn’t be used for egregious human rights abuses. Lockheed Martin typically offered a robotic response, asserting that “defense exports are regulated by the U.S. government and approved by both the Executive Branch and Congress to ensure that they support U.S. national security and foreign policy objectives.” Raytheon simply stated that its sales “of precision-guided munitions to Saudi Arabia have been and remain in compliance with U.S. law.”


How the Arms Industry Shapes Policy

Of course, weapons firms are not merely subject to U.S. laws, but actively seek to shape them, including exerting considerable effort to block legislative efforts to limit arms sales. Raytheon typically put major behind-the-scenes effort into keeping a significant sale of precision-guided bombs to Saudi Arabia on track. In May 2018, then-CEO Thomas Kennedy even personally visited the office of Senate Foreign Relations Committee chair Robert Menendez (D-NJ) to (unsuccessfully) press him to drop a hold on that deal. That firm also cultivated close ties with the Trump administration, including presidential trade adviser Peter Navarro, to ensure its support for continuing sales to the Saudi regime even after the murder of prominent Saudi journalist and U.S. resident Jamal Khashoggi.

The list of major human rights abusers that receive U.S.-supplied weaponry is long and includes (but isn’t faintly limited to) Saudi Arabia, the UAE, Bahrain, Egypt, Turkey, Nigeria, and the Philippines. Such sales can have devastating human consequences. They also support regimes that all too often destabilize their regions and risk embroiling the United States directly in conflicts.

U.S.-supplied arms also far too regularly fall into the hands of Washington’s adversaries. As an example consider the way the UAE transferred small arms and armored vehicles produced by American weapons makers to extremist militias in Yemen, with no apparent consequences, even though such acts clearly violated American arms export laws. Sometimes, recipients of such weaponry even end up fighting each other, as when Turkey used U.S.-supplied F-16s in 2019 to bomb U.S.-backed Syrian forces involved in the fight against Islamic State terrorists.

Such examples underscore the need to scrutinize U.S. arms exports far more carefully. Instead, the arms industry has promoted an increasingly “streamlined” process of approval of such weapons sales, campaigning for numerous measures that would make it even easier to arm foreign regimes regardless of their human-rights records or support for the interests Washington theoretically promotes. These have included an “Export Control Reform Initiative” heavily promoted by the industry during the Obama and Trump administrations that ended up ensuring a further relaxation of scrutiny over firearms exports. It has, in fact, eased the way for sales that, in the future, could put U.S.-produced weaponry in the hands of tyrants, terrorists, and criminal organizations.

Now, the industry is promoting efforts to get weapons out the door ever more quickly through “reforms” to the Foreign Military Sales program in which the Pentagon essentially serves as an arms broker between those weapons corporations and foreign governments.


Nine of the 12 members of a high-level congressional committee charged with advising on the U.S.’s nuclear weapons strategy have direct financial ties to contractors that would benefit from the report’s recommendations or are employed at think tanks that receive considerable funding from weapons manufacturers.

While the Congressional Commission on the Strategic Posture of the United States (CCSPUS) purports to recommend steps to avoid nuclear conflict, it does nothing to disclose its own potential conflicts of interest with the weapons industry in its final report or at rollout events at think tanks in Washington.

The United States will soon face “a world where two nations [China and Russia] possess nuclear arsenals on par with our own,” warned the commission’s final report, released in mid-October. “In addition,” the report charged, “the risk of conflict with these two nuclear peers is increasing. It is an existential challenge for which the United States is ill-prepared.”

According to the CCSPUS, this potential doomsday scenario requires the U.S. to make “necessary adjustments to the posture of US nuclear capabilities – in size and/or composition,” a policy shift that would steer billions of taxpayer dollars to the Pentagon and nuclear weapons contractors.

“What we’ve consistently seen is the nuclear weapons industry buying influence and that means we cannot make serious decisions about our security when the industry is buying influence through think tanks and commissioners they are skewing the debate,” said Susi Snyder, program coordinator at the International Campaign to Abolish Nuclear Weapons.

“Instead of having a debate about the tools and materials we need to make ourselves safe,” she added, “we’re having a debate about which company should get the contracts. And that doesn’t make the American people safe or anyone else in the world.”

The CCSPUS was established two years ago via the annual defense policy bill, and conflicts of interest on the commission were apparent from the beginning. But there are deep ties between the commission and the weapons industry.

The most recognizable member of the CCSPUS is its vice-chair, Jon Kyl, who served as a senator from Arizona from 1995 to 2013 and again in 2018, after the death of John McCain. While this, and more, is included in his biography in the commission’s report, what’s left out is his more recent employment as a senior adviser with the law firm Covington & Burling, whose lobbying client list includes multiple Pentagon contractors that would benefit from the commission’s recommendations.

In 2017 Kyl, personally, was registered to lobby for Northrop Grumman, which manufactures the B-21 nuclear bomber that the commission recommends increasing the number the U.S. plans to buy, at a cost to taxpayers of nearly $700 million each. The former senator was listed as a “senior adviser” on the firm’s website until at least December 1, 2022, nearly 10 months after the commissioner selections for the CCSPUS were announced in March 2022.

Another commissioner, Franklin Miller, is a principal at the Scowcroft Group, a business advisory firm that describes Miller as having expertise in “nuclear deterrence,” and acknowledges its work in the weapons sector.

“The Scowcroft Group successfully advised a European defense leader on a strategic acquisition opportunity,” says the consulting firm in the “Defense/Aerospace” section of its website. “We have also assisted a major defense firm in pursuing global partnerships and co-production opportunities.”

Kyl and Miller are joined on the CCSPUS by retired general John E Hyten, who previously served as the vice-chairman of the joint chiefs of staff, the second-highest-ranking member of the U.S. military.

While Hyten’s biography in the commission’s report lauds his extensive military service, in retirement he has worked closely with a number of firms that could benefit immensely from the commission’s recommendations.

This March he was appointed as special adviser to the CEO of C3 AI, an artificial intelligence company that boasts of working with numerous agencies at the Department of Defense. In June 2022, Hyten was named executive director of the Blue Origins foundation, called the Club for the Future, and as a strategic adviser to Blue Origin’s senior leadership. Blue Origin is wholly owned by Amazon founder Jeff Bezos, and works directly with the National Aeronautics and Space Administration (NASA), the air force and the space force on space launch-related capabilities.

Hyten’s ties to these firms are notable given the CCSPUS report’s repeated overtures for improving and investing in space and artificial intelligence capabilities. Specifically, the report recommends the United States “urgently deploy a more resilient space architecture” and take steps to ensure it is “at the cutting edge of emerging technologies – such as big data analytics, quantum computing, and artificial intelligence (AI).”

The CCSPUS also included think tank scholars whose employers receive significant funding from the arms industry. Two commission members work at the Hudson Institute, which, according to its most recent annual report, received in excess of $500,000 from Pentagon contractors in 2022. This includes six-figure donations from some of the Pentagon’s top contractors, including Lockheed Martin, Northrop Grumman and BAE Systems.

On Monday, October 23, the Hudson Institute held an event to highlight the CCSPUS’s report that included the two Hudson Institute employees who also served as commissioners. The event unabashedly promoted recommendations from the report that would be a financial windfall for Hudson’s funders. The landing page for the event features a photo of a B-21 stealth bomber, the same photo used in the commission report that also recommended that the U.S. strategic nuclear posture be modified to “increase the planned number of B-21 bombers and tankers an expanded force would require.”

Neither at the event nor in the report is it noted that the plane’s manufacturer, Northrop Grumman, is in the Hudson Institute’s highest donor tier, contributing in excess of $100,000 in 2022.

Another commissioner, Matthew Kroenig, is a vice-president at the Atlantic Council, a prominent DC think tank which, according to the organization’s most recent annual report, is funded by several top Pentagon contractors, including Lockheed Martin, Northrop Grumman, Raytheon (now RTX), General Atomics, Saab and GM Defense. The Atlantic Council also receives more than $1 million a year directly from the Department of Defense and between $250,000 and $499,999 from the Department of Energy, which helps manage the nation’s nuclear arsenal.

These seeming conflicts of interest were not mentioned at any point in the CCSPUS’s report or at an Atlantic Council event promoting the report and featuring the same photo of the B-21 used by the Hudson Institute and the commission.

Even commissioners whose careers had included positions that were notably critical of nuclear weapons had recently established ties with firms that profit from the nuclear and conventional weapons industry.

Commissioner Lisa Gordon-Hagerty worked for years at the pinnacle of nuclear weapons policy in the U.S., including positions on the national security council, the U.S. House of Representatives and the Department of Energy. She was also the director of the Federation of American Scientists, a non-profit organization known for advocating for reductions in nuclear weapons globally. Her last government position prior to joining the commission was serving as the head of the National Nuclear Security Administration (NNSA), which is responsible for military applications of nuclear science. She resigned from the post in 2020, allegedly after heated disagreements with the secretary of energy, who tried to cut NNSA funding.

While much of her career is mentioned in the commission report, what’s left out is that Gordon-Hagerty has also been cashing in on her nuclear expertise. After leaving the NNSA, in 2021 she joined the board and became director of strategic programs at Westinghouse Government Services, a nuclear weapons contractor that has been paid hundreds of millions of dollars for work with the Department of Defense and Department of Energy.

Like Gordon-Hagerty, fellow commissioner Leonor Tomero had a distinguished career at the highest levels of nuclear weapons policy. According to her bio in the commission report, she was the deputy assistant secretary of defense for nuclear and missile defense policy and served for over a decade on the House Armed Services Committee as counsel and strategic forces subcommittee staff lead, where her portfolio included the establishment of the U.S. space force, nuclear weapons, nuclear nonproliferation, nuclear cleanup, arms control and missile defense.

Outside government, Tomero was Director of Nuclear non-proliferation at the Center for Arms Control and Non-Proliferation, an organization that has repeatedly called for reductions in the U.S. nuclear weapons arsenal. Tomero is also on the board of the Council for a Livable World, which explicitly states that its goal is to eliminate nuclear weapons.

Yet, in September, Tomero became a vice president of government Relations at JA Green & Company, a lobbying firm whose client list includes a host of military contractors that could see revenues soar if the CCSPUS’s recommendations are adopted. Space X, for example — which pays $50,000 every three months to JA Green for lobbying related to “issues related to national security space launch” — would probably benefit mightily from the commission recommendation that “the United States urgently deploy a more resilient space architecture and adopt a strategy that includes both offensive and defensive elements to ensure US access to and operations in space.”

“No clients of JA Green & Company sought to influence the work of the Commission or the Commission’s recommendations in any way,” said Jeffrey A Green, president of JA Green, in an email. “We follow all applicable ethics rules and there are no conflicts of interest.”

None of the potential conflicts of interest between commissioners’ financial interests and the policy proposals laid out in their final report were disclosed by the CCSPUS itself within its final report or at any public event highlighting its findings.

The commission’s executive director, William A Chambers, provided a statement on behalf of the CCSPUS and its members:

“Members of [the commission] were chosen and appointed by Members of Congress based on their national recognition and significant depth of experience in such professions as governmental service, law enforcement, the Armed Forces, law, public administration, intelligence gathering, commerce, or foreign affairs,” wrote Chambers. “Before they began performing their role as Commissioners, they were instructed on the ethics rules that govern congressional entities and were required to comply with rules set forth by the Select Committee on Ethics of the Senate and the Committee on Ethics of the House of Representatives.”

A brief look at those published rules do not, prima facie, reveal that conflicts of interest arise in the circumstances described above. Their focus is on financial conflicts.

But the opacity about potential conflicts of interest leaves some experts questioning the CCSPUS’s recommendations.


“There’s a huge argument raging over what is security, how much does it rely on transparency and, especially when it comes to nuclear weapons, there is a call for greater transparency,” said Snyder of the International Campaign to Abolish Nuclear Weapons. “That light they’re asking to shine on China, North Korea and Iran is a light they also need to shine on their own decision-making.”

Reining in the MIC

The impetus to move ever more quickly on arms exports and so further supersize this country’s already staggering weapons manufacturing base will only lead to yet more price gouging by arms corporations. It should be a government imperative to guard against such a future, rather than fuel it. Alleged security concerns, whether in Ukraine, Israel, or elsewhere, shouldn’t stand in the way of vigorous congressional oversight. Even at the height of World War II, a time of daunting challenges to American security, then-Senator Harry Truman established a committee to root out war profiteering.

Yes, citizen's tax dollars are being squandered in the rush to build and sell ever more weaponry abroad. Worse yet, for every arms transfer that serves a legitimate defensive purpose, there is another — not to say others — that fuels conflict and repression, while only increasing the risk that, as the giant weapons corporations and their executives make fortunes, this country will become embroiled in more costly foreign conflicts.

One possible way to at least slow that rush to sell would be to “flip the script” on how Congress reviews weapons exports. Current law requires a veto-proof majority of both houses of Congress to block a questionable sale. That standard — perhaps you won’t be surprised to learn — has never (yes, never!) been met, thanks to the millions of dollars in annual election financial support that the weapons companies offer our congressional representatives. Flipping the script would mean requiring affirmative congressional approval of any major sales to key nations, greatly increasing the chances of stopping dangerous deals before they reach completion.

Praising the U.S. arms industry as the “arsenal of democracy” obscures the numerous ways it undermines security and wastes tax dollars. Rather than romanticizing the military-industrial complex, isn’t it time to place it under greater democratic control? After all, so many lives depend on it.

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