Part IV BIG MILITARY-INDUSTRIAL COMPLEX
By Basia Yoffe
Until the latest of our world conflicts, the United States had no armaments industry. American makers of plowshares could, with time and as required, make swords as well. But now we can no longer risk emergency improvisation of national defense; we have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United States corporations.
This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence—economic, political, even spiritual—is felt in every city, every statehouse, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources, and livelihood are all involved; so is the very structure of our society.
In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.
Watch this excerpt from Dwight D. Eisenhower’s exit speech from the presidency on January 17, 1961.
<http://www.youtube.com/watch?v=8y06NSBBRtY>
Based on publicly reported U.S. Department of Defense contract information since October 30, 2006, the top three corporations with defense contracts are Lockheed Martin Corporation, The Boeing Company, and Northrop Grumman Corporation.
<http://www.militaryindustrialcomplex.com/contracts-leaderboard.asp>
Lockheed Martin Corporation
Company Information
“Lockheed Martin Corporation is a global security company engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products. The Company also provides a range of management, engineering, technical, scientific, logistic, and information services. It serves both domestic and international customers with products and services that have defense, civil, and commercial applications, with its principal customers being agencies of the United States Government. The Company operates in four business segments: Aeronautics, Electronic Systems, Information Systems & Global Services, and Space Systems.”
“In September 2008, Lockheed Martin Corporation acquired Aculight Corporation. In January 2009, it completed its acquisition of Universal Systems & Technology, Inc. (UNITECH). In August 2009, it completed its acquisition of Gyrocam Systems LLC (Gyrocam). Gyrocam develops and supplies gyrostabilized optical surveillance systems and sustainment field services, principally to the United States military. Lockheed Martin Missiles and Fire Control, a unit of the Company's Electronic Systems business area, would manage the Gyrocam business.”
Lockheed Martin Corporation
6801 Rockledge Dr.
Bethesda, MD 20817
Phone: +1 (301) 897-6000
Fax: +1 (301) 897-6919
Information taken from the New York Times
<http://topics.nytimes.com/top/news/business/companies/lockheed_martin_co...
Net Sales/Revenues for 2010: $45.8 Billion <http://www.dailyfinance.com/financials/lockheed-martin-corporation/lmt/n...
Total Assets as of 2010: $31.58 Billion <http://www.dailyfinance.com/financials/lockheed-martin-corporation/lmt/n...
Power and Influence of Lockheed Martin Corporation
Lockheed Martin is the nation’s top defense contractor, the brains behind such high-tech military hardware as the F-16 jet fighter and a variety of land and sea missiles. In 2001, the company landed the biggest defense contract in history when it was named the main contractor for the Joint Strike Fighter. Considering that access is the name of the game when securing such lucrative contracts, it’s no surprise that Lockheed splits its campaign money equally between Democrats and Republicans. All told, NASA and the Defense Department account for roughly 80 percent of the company’s annual sales.
2010 Lobbying Expenditures: $12,773,870
2008 Lobbying Expenditures: $15,981,506 <http://opensecrets.org/>
Senator Charles Schumer (D-NY) was one of the top recipients of campaign contributions from Lockheed Martin during the 2010 election cycle. Senator Schumer wrote a letter to Defense Secretary Robert Gates, touting the benefits of Lockheed Martin participating in the upgrade to the Marine One presidential helicopter fleet. <http://schumer.senate.gov/new_website/record.cfm?id=330983>
House member Howard McKeon (R-CA) was a top recipient of campaign contributions from Lockheed Martin during the 2010 election cycle. Since his election in 1992, the defense and aerospace industries have practically bankrolled <http://www.opensecrets.org/politicians/industries.php?cycle=Career&type=... his political career. And over the years, he's returned the favor, directing millions <http://www.dailynews.com/breakingnews/ci_11898892?source=pkg> in pork-barrel projects to defense contractors like Lockheed Martin and Boeing.
<http://motherjones.com/politics/2010/12/buck-mckeon-armed-services-afgha...
Larry Duncan, a Lockheed Martin <http://topics.nytimes.com/top/news/business/companies/lockheed_martin_co... lobbyist, served on a Congressional Black Caucus institute panel that recommended that the United States form closer ties with Liberia, even as his company was negotiating a huge airport contract there.
<http://www.nytimes.com/2010/02/14/us/politics/14cbc.html?pagewanted=2>
A former engineer for Lockheed Martin claimed in a federal whistle-blower lawsuit that the company knowingly used defective stealth coatings when building its F-22 <http://topics.nytimes.com/top/reference/timestopics/subjects/m/military_... Raptor stealth jets.
<http://www.nytimes.com/2009/11/12/us/12plane.html?_r=1>
On April 7, 2008, the EEOC brought an age-discrimination lawsuit against Lockheed Martin. The lawsuit alleged that in 2000, the company had discriminated against eight of its employees between the ages of 47 and 65 years old, when they were fired during a workforce reduction. As part of a settlement, Lockheed Martin agreed to a $773,000 payout.
<http://www.lawyersandsettlements.com/settlements/11466/lockheed-martin-a...
Along with other defense contractors, Lockheed Martin is a sponsor of Mathcounts, a middle school math competition. This is the initial step in recruiting the best minds in the country.
<http://www.youtube.com/watch?v=Lqt8B-r9iik&feature=feedu>
Boeing Company
Company Information
“The Boeing Company (Boeing) is an aerospace company. Boeing is engaged in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services. The Company operates in five segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network & Space Systems (N&SS), Global Services & Support (GS&S), and Boeing Capital Corporation (BCC). Boeing's Other segment includes the activities of engineering, operations and technology (EO&T), and shared services group (SSG), as well as intercompany guarantees provided to BCC. In July 2010, the Company acquired Narus, which is a provider of network traffic and analytics software. On August 5, 2010, the Company acquired Argon ST, Inc. (Argon). In December 2010, Boeing completed the acquisition of the business and operations conducted by Summit Aeronautics Group in Helena, Montana.”
Boeing Company
100 N. Riverside Plaza
Chicago, IL 60606
Phone: +1 (312) 544-2000
Fax: n.a.
In June 2010, Boeing announced that it was entering the bidding to build a fleet of presidential helicopters, which added a major new player to a project the Pentagon is trying to revive after President Obama <http://topics.nytimes.com/top/reference/timestopics/people/o/barack_obam... criticized it as contracting "gone amok."
Information taken from the New York Times
<http://topics.nytimes.com/top/news/business/companies/boeing_company/ind...
Net Sales/Revenues for 2010: $64.31 Billion
Total Assets as of 2010: $64.53 Billion
<http://www.dailyfinance.com/financials/the-boeing-company/ba/nys/balance...
Power and Influence of Boeing
“Boeing is the world’s top manufacturer of commercial airplanes, including the 767 and the 747. The company is also a leading military supplier, making fighter bombers, transport planes and the Apache helicopter. The company regularly lobbies Congress to increase defense spending and to win military contracts, although it lost the $300 billion Joint Strike Fighter contract to rival Lockheed Martin in 2001. Boeing has also supported expanding free trade, especially in Asia, where it hopes to sell more commercial aircraft. The company also pushed for Congress to reauthorize the Export-Import Bank, which gives loan guarantees to businesses. In 2001, Boeing got $2.5 billion from the bank.”
2010 Lobbying Expenditures: $17,896,000
2008 Lobbying Expenditures: $17,540,000 <http://opensecrets.org/>
Senator Patty Murray (D-WA), who entered the Senate in 1997, is the top recipient of campaign contributions from Boeing, according to opensecrets.org <http://opensecrets.org>. The Senator is a longtime champion of Boeing's causes in Congress.
<http://seattletimes.nwsource.com/html/boeingaerospace/2010177963_boeingm...
Todd Tiahrt, <http://www.sourcewatch.org/index.php?title=Republican> a former Republican Representative for the 4th Congressional district of Kansas, who served from 1995 to 2011, was the top House recipient of campaign contributions from Boeing. He is a former Boeing employee who worked on contract procurement.
<http://bioguide.congress.gov/scripts/biodisplay.pl?index=t000260>
The U.S. Air Force chose Boeing as the winner of an aerial refueling contract worth about $35 billion. “The award is the result of a lot of hard work,” said former U.S. Rep. Todd Tiahrt, who worked on the tanker issue in Congress for a decade.
<http://www.kansas.com/2011/02/24/1734764/boeing-wins-air-force-tanker-co...
Boeing is putting pressure on unions to accept concessions by threatening to move operations from Washington State to South Carolina.
<http://seattletimes.nwsource.com/html/boeingaerospace/2010177947_boeing0...
A panel at the World Trade Organization <http://topics.nytimes.com/top/reference/timestopics/organizations/w/worl... ruled that Boeing had received up to $5 billion in improper subsidies for its 787 Dreamliner <http://topics.nytimes.com/top/news/business/companies/boeing_company/787... and other jets, giving it an unfair advantage against its European rival, Airbus <http://topics.nytimes.com/top/news/business/companies/airbus_sas/index.h....
<http://www.nytimes.com/2011/02/01/business/01wto.html?ref=nicolaclark>
According to a trove of WikiLeaks cables, American diplomats are using their influence to pressure governments around the world to buy Boeing products.
<http://www.nytimes.com/2011/01/03/business/03wikileaks-boeing.html?scp=3...
Northrop Grumman Corporation
Company Information
“Northrop Grumman Corporation (Northrop Grumman) is an integrated enterprise consisting of businesses that cover the entire security spectrum, from undersea to outer space and into cyberspace. The Company operates in five segments: Aerospace Systems, Electronic Systems, Information Systems, Shipbuilding and Technical Services. In April 2009, the Company acquired Sonoma Photonics, Inc., as well as assets from Swift Engineering's Killer Bee Unmanned Air Systems product line. In December 2009, it sold its Advisory Services Division (ASD). In January 2009, Northrop Grumman streamlined its organizational structure by reducing the number of reporting segments from seven to five.”
Northrop Grumman Corporation
1840 Century Park East
Los Angeles, CA 90067
Phone: +1 (310) 553-6262
Fax: +1 (310) 553-2076
Information taken from the New York Times
<http://topics.nytimes.com/top/news/business/companies/northrop_grumman_c...
Net Sales/Revenues for 2010: $34.8 Billion
Total Assets as of 2010: $30.8 Billion
<http://www.dailyfinance.com/financials/northrop-grumman-corporation/noc/...
Power and Influence of Northrop Grumman Corporation
“Northrop Grumman is the fourth-largest defense contractor and the world's largest builder of naval vessels as of 2010. As a member of the miscellaneous defense industry, Northrop Grumman specializes in aerospace systems, electronic systems, information systems, ship building and technical services. Northrop Grumman focuses much of its efforts securing government defense contracts and earmarks. During the 2008 election cycle, people and political action committees associated with Northrop Grumman contributed more than $2 million to federal candidates and committees, favoring Democrats slightly.”
2010 Lobbying Expenditures: $15,740,000
2008 Lobbying Expenditures: $20,933,252
<http://opensecrets.org/>
Senator Daniel Inouye (D-HI) was one of the top recipients of campaign contributions from Northrop Grumman during the 2010 election cycle. Senator Inouye was the Senate Appropriations Chairman in the 111th Congress. Both Boeing and Northrop Grumman, among Inouye’s largest PAC contributors, each received millions in 2010 defense earmarks—not specifically requested by Inouye but approved by his committee.
<http://www.publicintegrity.org/articles/entry/2794/>
House member Dutch Ruppersberger (D-CA) was a top recipient of campaign contributions from Northrop Grumman during the 2010 election cycle. Ruppersberger awarded Northrop Grumman a $4,000,000 earmark for Vehicle and Dismount Exploitation Radar (VADER).
<http://www.opensecrets.org/politicians/earmarks.php?cid=N00025482>
Cable news analysts often have relationships with military contractors. Lt. Gen. Tom McInerney appeared on Fox News to discuss the Somali pirates situation, and managed to use it as an opportunity to shill for the F-22. McInerney worked as a consultant <http://www.humanevents.com/search.php?author_name=Lt.%20Gen.%20Tom+McIne... to Northrop Grumman, a major contractor <http://www.es.northropgrumman.com/ASD/combat/APG-77.html> for the F-22.
http://www.alternet.org/blogs/media/136085/fox_'military_analyst'_shills_for_f-22_fighter_jet/
Northrop Grumman was to get a $25 million subsidy <http://washington.bizjournals.com/washington/stories/2010/02/01/daily29.... from the Washington, DC, City Council to move its headquarters to Washington, DC. The legislation was originally sponsored by seven of the City Council’s 13 members and supported by Mayor Adrian Fenty. Community activists became aware of the plan and successfully pressured the City Council to stop the deal.
http://blogs.alternet.org/speakeasy/2010/04/21/dc-community-celebrates-v...
