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general dynamics
As Bombs Drop, Weapons Industry Stocks Take Off
One wonders how the executives of these companies feel about their products being used for mass slaughter in Gaza and dangerous escalation in Lebanon.
Oct 04, 2024
It’s a sad but familiar spectacle — as people die at the hands of U.S. weapons in a faraway war zone, the stock prices of arms makers like Raytheon and Lockheed Martin soar. A piece posted yesterday at Forbes tells the tale: “Defense Stocks Hit All-Time Highs Amidst Mideast Escalation.”
One wonders how the executives of these companies feel about their products being used for mass slaughter in Gaza and dangerous escalation in Lebanon. For the most part they’re not talking, although they are glad to occasionally inform their investors that “turbulence” and “instability” means their products will be needed in significant quantities by our “allies.”
And, not unlike the Biden administration, they tend to couch their rhetoric in terms of a “right to self-defense.” They act as if Israel’s killing of 40,000 people and displacing millions more — the vast majority of whom have absolutely nothing to do with Hamas, nor any way to influence their behavior — can somehow be white washed by calling it a defensive operation.
No one who steps outside the bankrupt world of official Washington to look at the impacts on actual human beings in Gaza, the West Bank, and Lebanon can take the notion that U.S. weapons are being used for defense in the current Middle East war seriously.
Peter Thiel and his colleagues at Palantir are an exception to the closed mouthed approach of executives at the larger weapons companies. When asked how he felt about his company’s technology to pick targets in Gaza, he said “I'm not on top of all the details of what's going on in Israel, because my bias is to defer to Israel. It's not for us to second-guess every, everything.” And Palantir CEO Alex Karp flew the entire company board to Israel earlier this year to show solidarity with Israel’s war effort in Gaza.
At least Palantir’s leaders are honest and open about where they stand. Leaders of firms like Lockheed Martin, Raytheon, General Dynamics, and Boeing that supply the weapons that have laid waste to Gaza and are now pounding Lebanon prefer to hide behind euphemisms about promoting defense, deterrence, and stability, and assisting allies.
But what about when those allies are engaged in widespread war crimes that prompted the International Court of Justice to say that Israel’s war on Gaza could plausibly be considered a genocide? Is it morally acceptable to just cash the checks and avert one’s eyes, or do the companies profiting from this grotesque humanitarian disaster have a moral responsibility for how their products are being used?
A few years ago, during the height of Saudi Arabia’s brutal invasion of Yemen — enabled by billions of dollars of U.S.- and European-origin weapons — Amnesty International probed this very point. In a report entitled “Outsourcing Responsibility,”the group provided the findings of a survey it had done of 22 arms companies, asking them “to explain how they meet their responsibilities to respect human rights under internationally recognized standards.”
Amnesty noted that "many of the companies investigated supply arms to countries accused of committing war crimes and serious human rights violations, such as Saudi Arabia and the UAE.” None of the companies queried provided evidence that they were doing any sort of due diligence to ensure that their weapons weren’t being used to commit war crimes or human rights abuses. Fourteen companies failed to respond at all, and of the eight that did answer Amnesty’s questions gave variations on the theme of “we just do what the government allows.”
This casts influential arms makers as innocent bystanders who await government edicts before marketing their wares. In fact, weapons manufacturers spend millions year in and year out pressing for weaker human rights strictures and quicker decisionmaking on the sale of arms to foreign clients.
The weapons merchants are right about one thing. It is going to take changes in government policy to stop the obscene trafficking of weapons of war into the world’s killing zones. That will mean breaking the web of influence that ties government policy makers, corporate executives, and many members of Congress to the continued production of weapons on a mass scale. We can’t expect a profit making entity like Lockheed Martin to regulate itself when there are billions to be made fueling conflicts large and small.
Which means the responsibility for ending the killing and the war profiteering it enables falls to the rest of us, from students calling for a ban on arming Israel to union members looking to reduce their dependency on jobs in the weapons sector to anyone who wants a foreign policy driven by what makes us safe, not what makes Palantir and Lockheed Martin rich.
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It’s Time for the US to Kick Its War Habit and Get Mad at MAD
Using the vernacular of the day, perhaps it’s particularly on target to say that our whole country suffers from Militarism Abuse Disorder or (all too appropriately) MAD.
Sep 25, 2024
My name is Frida, and my community is military dependent. (I feel, by the way, like I’m introducing myself at a very strange AA-like meeting with lousy coffee.) As with people who have substance abuse disorders, I’m part of a very large club. After all, there are weapons manufacturers and subcontractors in just about every congressional district in the country, so that members of Congress will never forget whom they are really working for: the military-industrial complex.
Using the vernacular of the day, perhaps it’s particularly on target to say that our whole country suffers from Militarism Abuse Disorder or (all too appropriately) MAD.
I must confess that I don’t like to admit to my military dependency. Who does? In my case, it’s a tough one for a few reasons, the biggest being that I’m an avowed pacifist who believes that war is a crime against humanity, a failure of the imagination, and never (no, not ever) necessary. Along with the rest of my family of five, I live below the taxable income level. That way, we don’t pay into a system that funds war preparations and war-making. We have to be a little creative to make our money stretch further, and we don’t eat out or go to the movies every week. But we don’t ever feel deprived as a result. In essence, I’ve traded career success and workplace achievement for a slightly clearer conscience and time—time to work to end militarism and break our collective addiction!
Those who suffer from Militarism Abuse Disorder can’t even ask the questions, because they’re distracted by the promises of good jobs, nice apartments, and cheap consumer goods that the military-industrial complex is always claiming are right around the corner.
The Peter G. Peterson Foundation estimates that, in 2023, the United States of America spent $142 billion buying weapons systems and another $122 billion on the research and development of future weaponry and other militarized equipment. And keep in mind that those big numbers represent only a small fraction of any Pentagon budget, the latest of which the Pentagon’s proposing to be $849.8 billion for 2025—and that’s just one year (and not all of what passes for “national defense” spending either). A recent analysis by the Costs of War Project at Brown University calculated that, since September 11, 2001, the United States has used an estimated $8 trillion-plus just for its post-9/11 wars. Talk about addiction! It makes me pretty MAD, if I’m being honest with you!
It would be nice to ignore such monstrous numbers and the even bigger implications they suggest, to unfocus my eyes slightly as I regularly drive by the fenced facilities; manicured office parks; and noisy, bustling shipyards that make up the mega-billion-dollar-a-year industry right in my own neighborhood that’s preparing for… well, yes… the end of the world. Instead, I’m trying to be clear-eyed and aware. I’m checking my personal life all the time for compromise or conciliation with militarism: Am I being brainwashed when I find myself cheering for the fighters in that blockbuster movie we splurged on? Am I doing enough to push for a cease-fire in Gaza? Am I showing up with young people in my community who are backing higher salaries for teachers and no more police in schools? And of course, I keep asking myself: How are my daily consumer decisions lining up with my lofty politics?
I don’t always like the answers that come up in response to such questions, but I keep asking them, keep trying, keep pushing. Those who suffer from Militarism Abuse Disorder can’t even ask the questions, because they’re distracted by the promises of good jobs, nice apartments, and cheap consumer goods that the military-industrial complex is always claiming are right around the corner.
But here in my community, they never deliver!
New London: A Profile of Militarism Abuse Disorder
New London is a town of fewer than 28,000 people. The median income here is a little over $46,000—$32,000 less than the state average. We are a very old community. Long part of the fishing and hunting grounds of the Eastern Pequots, Nehantics, Mashantucket Pequot, and Mohegan, the city was founded in the 1600s and incorporated in the late 1700s. You see evidence of our age in the shape of our streets, curbed and meandering, long ago carved out of fields by cows and wagons, and in our architecture—aging industrial buildings, warehouses, and ice houses in the neighborhoods where their workers once lived—now derelict and empty or repurposed as auto repair stores or barber shops.
Sometimes I watch, almost mesmerized by the ferocious energy of all those cars careening up Howard Street on their way to work at General Dynamics. Car after car headed for work at the very break of day. Every workday at about 3:00 pm, they reverse course, a river of steel and plastic rushing and then idling in traffic, trying to get out of town as fast as possible.
As the only nation that has ever used nuclear weapons in war (in 1945) and has tested, perfected, and helped proliferate the technology of ultimate destruction for the last eight decades, the United States should be leading the charge to denuclearize, disarm, and abolish such weaponry.
General Dynamics Electric Boat repairs, services, and manufactures submarines armed with both conventional and nuclear weapons. And it certainly tells you something about our world that the company is in the midst of a major hiring jag, looking to fill thousands of positions in New London, Groton, and coastal Rhode Island to build the Columbia-class submarine, the next generation of nuclear-powered, nuclear-armed subs. Those behemoths of human ingenuity and engineering will cost taxpayers a whopping $132 billion, with each of the 12 new boats clocking in at about $15 billion—and mind you, that’s before anything even goes wrong or the schedule to produce them predictably stretches out and out. The company has already solved one big problem: how to wring maximum profits out of this next generation of planet-obliteration-capable subs. And that’s a problem that isn’t even particularly hard to sort out, because some of those contracts are “cost plus,” meaning the company says what the project costs and then adds a percentage on top of that as profit.
Such a cost-plus business bothers me a lot. I could almost be converted into a hard-nosed militarist if our weapons production industry was a nonprofit set of organizations, run with the kind of shoestring ingenuity that dozens of outfits in New London employ to feed the hungry, house the homeless, and care for the victims of domestic violence.
I break from my traffic-watching fugue on Howard Street to reflect on all that furious effort, all those advanced degrees, all that almost impossible intelligence being poured into making an even better, bigger, faster, sleeker, stealthier weapons-delivery system, capable of carrying and firing conventional and nuclear warheads. Why? We have so many already. And as the only nation that has ever used nuclear weapons in war (in 1945) and has tested, perfected, and helped proliferate the technology of ultimate destruction for the last eight decades, the United States should be leading the charge to denuclearize, disarm, and abolish such weaponry. That, after all, is what’s called for in the Treaty on the Prohibition of Nuclear Weapons.
If we are ever going to break our MAD addiction, one place to start is here on Howard Street with people who make their living working on one tiny component of this incredibly complex system. Economic conversion, moving resources and skills and jobs from the military-industrial complex to civilian sectors, is a big project. And it could indeed begin right here on Howard Street.
You Get What You Pay For
Our small town is also home to the Coast Guard Academy and two private colleges. Add the acreage of those three non-taxpaying institutions to the nearly 30 churches, synagogues, and other houses of worship that enjoy tax-free status here; throw in the dozens of nonprofits that do all the good work and you end up with an awfully small tax base. As a result, the municipal budget leans heavily on commercial taxpayers like General Dynamics Electric Boat, the military-industrial behemoth that moved into 24 acres of prime waterfront real estate in 2009 after it was vacated by the tax scofflaw Pfizer.
General Dynamics, like other military manufacturers, essentially only has one customer to please, the United States government. That makes the cost-plus contracting scheme even more egregious, guaranteeing that, no matter what goes wrong, its profits are always assured. Such a bonkers, counter-capitalist scenario passes all the costs on to American taxpayers and allows the privately held corporation to pocket all the profits, while handing out fat dividends to its shareholders. According to Sahm Capitol, “Over the past three years, General Dynamics’ Earnings Per Share grew by 3.7% and over the past three years, the total shareholder return was 62%.”
Am I to understand that spending money on just about anything else creates more jobs and more economic activity, while not threatening the world with annihilation?
For 2024, General Dynamics Electric Boat is paying taxes on property valued at $90.8 million—almost twice as much as that of the next highest taxpayer in our town. But it is also a bone of contention. The company, which paid CEO Phebe Novakovic $22.5 million in salary and stock awards in 2023, has no trouble taking the City of New London to court when they feel like their property is being overvalued or overtaxed. They win, too, so their property valuations yo-yo year to year when New London has been ordered to repay taxes to General Dynamics. Whether they pay taxes based on $90.8 million in property or $57 million doesn’t really matter to the company. It’s literal pocket change to the Pentagon’s third largest weapons contractor, a company that boasted $42.3 billion in revenue in 2023. But it matters a lot in a place like New London, where the annual budget process routinely shaves jobs from the schools, public works, and the civil service to make the columns all add up.
According to a report by Heidi Garrett-Peltier for the Costs of War Project at Brown University, $1 million of federal spending in the military sector creates 6.9 jobs (5.8 direct jobs and 1.1 in the supply chain). That same $1 million would create 8.4 jobs in the wind energy sector or 9.5 jobs in solar energy. Investing $1 million in energy efficiency retrofits creates 10.6 jobs. Use that $1 million to build streets or highways or tunnels or bridges or to repair schools and it will create “over 40% more jobs than the military, with a total multiplier of 9.8 jobs per $1 million spending.”
Wait, what? Are you telling me that, with their lack of transparency, accountability, and their cost-plus contracts, while building weapons systems for the sole purpose of destruction and wasting a lot of money in the process, the military-industrial complex is a lousy job creator? Am I to understand that spending money on just about anything else creates more jobs and more economic activity, while not threatening the world with annihilation?
As I work on a local level in my small town in Connecticut, I see how municipal policy should prioritize small businesses, mom-and-pop stores made of brick and mortar, over multinational corporations or big business. I see the return on investment from a small business in granular and tangible ways: the grocery store owner who starts each day by picking up garbage in his parking lot, the funeral home that sponsors the Little League team, the woman at the art gallery and frame shop who waters the street flowers, or the self-employed local photographer who serves on the board of the cooperative grocery store.
These businesses don’t employ tens of thousands of people, but they also don’t insist on tax abatements that undermine our local budget or fill our crowded streets with commuters hell-bent on getting away from the office and our town as quickly as possible.
You get what you pay for, right? Garrett-Peltier’s Costs of War report goes on to note that “healthcare spending creates more than twice as many jobs for the same level of spending, while education creates up to nearly three times as many jobs as defense spending… The employment multipliers for these domestic programs are 14.3 for healthcare, 19.2 for primary and secondary education, and 11.2 for higher education; the average figure for education is 15.2 jobs per $1 million spending.”
These are numbers I wish my City Council would commit to memory. In fact, we should all know these numbers by heart, because they counter the dominant narrative that military spending is good for the economy and that good-paying jobs depend on militarism.
The United States is investing trillions of dollars in the military, as well as in weapons contractors like General Dynamics, Boeing, and Lockheed Martin. Every U.S. president in modern history has prioritized the bottom lines of those corporations over a safe and healthy future for the next generation. Consider all of that as just so many symptoms of Militarism Abuse Syndrome. Isn’t it finally time to get really mad at MAD? Let’s kick the habit and get clean!
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'The Genocide Gentry': Weapon Execs Sit on Boards of Universities, Institutions
"This research provides a view into just how embedded the corporate, profit-fueled war machine is in our higher education and cultural institutions," said one campaigner.
Sep 18, 2024
A trio of human rights groups on Wednesday announced a new interactive initiative exposing what the coalition is calling a "Genocide Gentry" of weapons company executives and board members and "54 museums, cultural organizations, universities, and colleges that currently host these individuals on their boards or in other prominent roles."
The coalition—which consists of the Adalah Justice Project, LittleSis, and Action Center on Race and the Economy (ACRE)—published a map and database detailing the "educational and cultural ties to board members of six defense corporations" amid Israel's ongoing annihilation of Gaza, for which the U.S.-backed country is on trial for genocide at the International Court of Justice.
" Israel has destroyed every university in Gaza and nearly 200 cultural heritage sites since October 2023, using bombs and weapons manufactured by the companies included in the Genocide Gentry research," the coalition said. "As of April, these attacks have killed more than 5,479 students and 261 teachers and destroyed or critically damaged nearly 90% of all school buildings in Gaza."
"Universities across the country including the likes of Columbia University, Harvard University, the University of Southern California, and New York University have remained largely silent on Israel's genocidal campaign in Gaza," the groups added. "Behind closed doors, these same universities are hosting executives and board members of the companies manufacturing the weapons used in these attacks as board members, trustees, and fellows."
Members of the Genocide Gentry include:
- Jeh Johnson, Lockheed Martin board of directors: Johnson is currently a Columbia University trustee, and sits on the board of directors at MetLife and U.S. Steel. Columbia University notably shut down student protests demanding divestment from weapons companies like Lockheed Martin.
- Brian C. Rogers, RTX board of directors: Rogers is currently a trustee of the Harvard Management Company, tasked with managing the $50 billion endowment. Notably Harvard administrators have cracked down on students demanding divestment from weapons companies like RTX, formerly Raytheon.
- Catherine B. Reynolds, General Dynamics board of directors: Reynolds is a trustee of the Kennedy Center and sponsors a fellowship at New York University, which has also cracked down on anti-genocide protests and recently enacted a policy equating anti-Zionism with antisemitism.
"Students on university campuses across the country have not only been demanding divestment, but transparency," said Sandra Tamari, executive director of the Adalah Justice Project. "Transparency about their institutions' investments, partnerships, donors, and decision-makers, and their connections to individuals and companies directly enabling and profiting off war and genocide."
"This research helps provide some of this transparency by illuminating just how embedded the interests of the weapons industry are within our institutions, so we can begin chipping away at the power and influence that they wield," she added.
ACRE campaign director Ramah Kudaimi noted that "as part of its genocide since October 2023, Israel has targeted universities and cultural centers across Gaza, destroying campuses, museums, libraries, and more."
"That this is all backed by the United States means U.S. educational and cultural institutions have a responsibility to consider what their role is in helping end these war crimes, and that starts with reconsidering their connections with the weapons companies profiting from the destruction," Kudaimi said.
Munira Lokhandwala, director of the Tech and Training program at LittleSis, said: "This research provides a view into just how embedded the corporate, profit-fueled war machine is in our higher education and cultural institutions. Through this research, we show how the defense industry shapes and influences our civic and cultural institutions, and as a result, their silence around war and genocide."
"We must ask our institutions: What role are you playing in whitewashing war and destruction by inviting those who profit from manufacturing weapons onto your boards and into your galas?" she added.
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