The Military Industrial Complex Strikes Back

The MIC has been getting a smaller and smaller slice of the pie. It’s fighting back for power, relevance, and significance through the “War on Terror”…

A look at the evidence…
There are three ways, that I can think of using data from the Bureau of Economic Analysis, to quantitatively measure its size through time:

First, the percentage of total federal government expenditures (defined as federal consumption and investment expenditures*) devoted to military consumption and military investment expenditures can give us a good estimate of the size of the MIC relative to other federal government activities. Second, the percentage of Gross Domestic Product devoted to military consumption and military investment expenditures can give us an estimate about the size of the MIC relative to the rest of the economy. The following graphic, which I slapped together with the BEA data, shows these figures through time:

Figure 1

You’ll notice a couple of interesting points. First, of all federal consumption and investment expenditures, those devoted to the MIC are by far the greatest, making up about 67% of federal expenditures in 2006. About two-thirds of every dollar that the federal government uses to purchase something is used towards military expenditures. Second, the overall size of the MIC is relatively small, compared to the rest of the economy, only about 4.6 percent of GDP in 2006. Third, you’ll notice that both of these measures have a declining trend. The MIC seems to be less and less important to the overall economy and federal budget over the years.

The third measure of the MIC is perhaps the most telling. It is the level of military consumption and investment spending in dollars adjusted for general price inflation, i.e. measured in constant 2006 dollars. Again, slapping a quick graphic together with the data:

Figure 2

Obviously, there are some cyclical effects, corresponding to wars and the Reagan military build-up. However, the overall trend (looking past the cycles) is increasing with time. The period after World War Two is a period of gradual general build-up of U.S. forces to near WWII levels (notice that 2006 expenditures reach near 1942 spending levels). Although the trend may be that the relative importance of the MIC has been shrinking, the actual size of the MIC has been growing with time.

Putting two and two together…
The relative importance of the MIC has been shrinking in the past 50 years (Figure 1). It is becoming less central to the functioning of the overall US economy and has been becoming less of a spending priority relative to other government expenditures. However, the size of the MIC has been steadily growing (Figure 2). The MIC has been getting larger; however, it has been getting relatively smaller.

Could the “War on Terrorism” or the “Long War” be the result of a constantly growing MIC fighting for relative significance and power? Could the growing culture of world belligerency and militarism in the United States (as manifest in increasingly enforced “patriotism” and the military-biased media)?

I think the numbers say “YES!”. Taking a big picture view, it seems the current forces we see at play in U.S. policy are dominated by the MIC in a quest for post-Cold War significance. Significance is key to power in social decisions. For significance, the MIC needs an enemy or even better, a perpetual war. What better boogey man that some ambiguous and nebulous network terror organizations that provide a constant threat everywhere? Or Iraq? Or Iran?

* Note: The BEA’s measurement here does NOT count transfer payments (e.g. welfare, Medicare, Social Security, etc) as government consumption or investment expenditures.

Ah yes, "The Empire Strikes Back."

Soon, the seekers will return to power along with the righteous.

Before that day, however, we must venture through the gates of hell (figuratively speaking).

The "MIC" as you call it is only out for more power and money.

The only way to do so is to create more wars and threats.

Terrorism happens to be a convenient excuse.

"Hey Joe, we need to sell about 20K tons of depleted uranium or else you gotta pay for it."

"Alright Bill, we'll make up some excuse about a threat in Iraq. Maybe the idiots will buy it."

"Yeah thats a good idea. We'll blame it on our old allies al quaida."

"Hahah yeah, that ass Bin Laden never paid me back for his RPGS."

"Alright, call Rummy up we got a plot."

"But you act like America wouldn't destroy two buildings
In a country that was sponsoring bombs dropped on our children
I was watching the Towers, and though I wasn't the closest
I saw them crumble to the Earth like they was full of explosives
And they thought nobody noticed the news report that they did
About the bombs planted on the George Washington bridge
Four Non-Arabs arrested during the emergency
And then it disappeared from the news permanently
They dubbed a tape of Osama, and they said it was proof
"Jealous of our freedom," I can't believe you bought that excuse
Rockin a mother#ing flag don't make you a hero
Word to Ground Zero
The Devil crept into Heaven, God overslept on the 7th
The New World Order was born on September 11 ....


And just so Conservatives don't take it to heart
I don't think Bush did it, 'cuz he isn't that smart
He's just a stupid puppet taking orders on his cell phone
From the same people that sabotaged Senator Wellstone
The military industry got it poppin' and lockin'
Looking for a way to justify the Wolfowitz Doctrine
And as a matter of fact, Rumsfeld, now that I think back
Without 9/11, you couldn't have a war in Iraq
Or a Defense budget of world conquest proportions
Kill freedom of speech and revoke the right to abortions
Tax cut extortion, a blessing to the wealthy and wicked
But you still have to answer to the Armageddon you scripted
And Dick Cheney, you #in leech, tell them your plans
About building your pipelines through Afghanistan
And how Israeli troops trained the Taliban in Pakistan
You might have some house niggaz fooled, but I understand
Colonialism is sponsored by corporations
That's why Halliburton gets paid to rebuild nations "

Immortal Technique -The Cause of Death lyrics

[edit on 17-6-2007 by biggie smalls]

[edit on 17-6-2007 by biggie smalls]

Originally posted by biggie smalls
Soon, the seekers will return to power along with the righteous.

I'm not sure about that. The MIC is a highly entrenched, powerful group. It's not going to give up its power freely -- it start wars to remain in power.

Originally posted by biggie smalls
The "MIC" as you call it is only out for more power and money.

The only way to do so is to create more wars and threats.

Terrorism happens to be a convenient excuse.

I think you summed up things here quite nicely.