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Big Business, Money, and Politics

April 1, 2010

Posted by: Chad M. Gesser

Twitter: @profgesser

Email: chad.gesser@kctcs.edu

It must have been odd to hear Dwight Eisenhower leaving the office of President of the United States in 1961 with a message of warning of the formation of a military industrial complex.  A former five star general, who was the Supreme Commander of the Allied Forces in Europe during World War II, warning against the build up of the defense industry in the United States?

Eisenhower’s concern was that the political economic drive for building weapons and all the assorted gadgets (from bombs to airplanes to bullet proof vests) would eventually become integrated into our culture.  He was gravely concerned that buildup would affect our attitudes and values of our culture, even our institutions.  He was worried that our society would then, whether intentional or unintentional, seek to justify that establishment in the world.

This is not exclusive to war and conflict, but the industry that the federal government nurtured with public dollars would then come to serve the military needs of nations.  Sound far fetched?  Think cars, technology, even McDonald’s.  How do industries that grow and flourish in the United States then extend their reach throughout the world?  Is it possible to “westernize” the defense industry?

The growth of political action committees, special interest groups, and lobbyists is related to the early interlocked growth of the military and the defense industry.  There is plenty of evidence regarding the role that money plays in politics.  Below you will see how money has been tied to presidential fundraising and spending since 1976.  Campaign fundraising and spending continues to break records each presidential election cycle.


How important are public policies that regulate or free up spending for the political economy?  Did Eisenhower have a point about the formation of a military industrial complex?  Do you think the defense industry impacts the federal government in terms of budgeting and policy?  Do you think the health care industry (insurance companies, doctors, lawyers) had any financial stake in the recent health care reform debate?

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