Is the military-industrial complex a result of the reliance of the capitalist economy on military production as a stabiliser of - Essay Example

Download file to see previous pages... President Eisenhower used the term to refer to the close ties between the military and industrial sectors. The origin of military industrial complex can be traced during World War II period, when many companies came into contact with the state. Majority of the companies started manufacturing armaments and tanks for the government on a large scale. During the world war, the Department of Defense granted many private companies military contracts in aerospace and the production of military weapons, tanks and vehicles. The US government was not producing weapons like other countries, but contracted private companies to supply the needed military material. As a result of the cold war tensions, many con-agglomerates won valuable defense contracts. This contributed to the rise of stock prices in the year 1960 (Geisst 2006, p.272). The private companies relied on government contracts to get their revenue. The government also appointed high rank officials in the military as executives and consultants. This gave rise to a close relationship between the military and private corporations, which received a lot of criticism. In the recent years, the military-industrial complex terminology has fallen out of use. However, it is still used in reference to the relationship between governments and armaments producers, who spend enormous amount of budget on the defence sector (Geisst 2006, p. 273). Many governments prefer to buy military equipments and supplies from local private companies at an additional cost. This is what yields the label military-industrial complex, which is an established relationship between the defense establishments and the domestic industries. Military hardware accounts for the largest expenditure on total government equipment expenditure. Contracts awarded by department of defense provide suppliers with competitive advantage in financial, technological and commercial terms. The reliance on supplies and armor produced by a state own factory is thought to reduce the dependence on private supplies and the vulnerability of a nation to arms embargo. The production of arms by government can help reduce overpricing, abuse and long term dependence on foreign arm producers and private corporations in a country directly (Schiavo-Campo and Hazel 2008, p.271). The United States has become the powerful and incontestable power that has emerged from the centuries of the development of capitalistic economies. The US takes a center stage on the international economic structure, which relies on the economies of the underdeveloped counties. The U.S internal economy is tied to the world economic system through its continued dependency on its military expenditures and its extended exploitation of third world countries. The emergency of U.S as a world power dates back in mechanical production and technological innovation in the years before 1914. Before the year 1914, America had made access to its expansive natural resources and exploited them, which stimulated foreign trade outlets. This also led to the establishment of a flexible protective tariff system making U.S to benefit from financial assistance from older nations. This made it possible for U.S to develop a good network of transport and communication. During the World war I, U.S business increased as it move in to take advantage of the markets in the post war era (Cannon and Emile 2011, p.15). During this time, Latin America formed a main target for U.S because it was ...Download file to see next pagesRead More