There is no doubt that war creates opportunities for profit and owning stock in companies with war contracts can bring one wealth. BUT war is often uncontrollable and creates chaos in the areas in which it takes place. I don’t think the the executive officers of companies like Siemens, Krupp, Mercedes-Benz or any other manufacturer in the highly industrialized Ruhr Valley, or those in the heavy industrial cities of Birmingham, Leeds, Liverpool and Manchester were very happy after 1943. Getting paid can be a problem as well when the country you’ve sold machinery to is bankrupted by war. In many cases, even the winners, like France and Britain were bankrupted. The Brits were still rationing automobile tires when I was there in the mid-1980s.
What can’t be reasonably predicted is not good for business. For the most part, business requires social and political stability, whether that is provided by stern authoritarianism, or laissez faire democracy. War can be a crapshoot, as many American brokerages that were heavily invested in German industry in the thirties discovered in the forties. Prescott Bush, later the father and grandfather of two American presidents, in charge of German investments for his father-in-law, George Herbert Walker, through Walker’s Wall Street investment house, G.H. Walker & Co., found this out the hard way. Adding insult to injury, after the war, Bush had the pleasure of being dragged through an FBI and US Senate investigations under the charge of assisting the enemy during wartime. But there is no doubt that there are fortunes to be made from war.
@elbanditoroso About that speech. Evidently, Eisenhower had much more to say, but decided against it:
In the spring of 1961, I was part of a small group of undergraduates who met with the president’s brother, Milton Eisenhower, who was then president of Johns Hopkins University. Milton Eisenhower and a Johns Hopkins professor of political science, Malcolm Moos, played major roles in the drafting and editing of the farewell speech of January 1961.
The actual drafter of the speech, Ralph E. Williams, relied on guidance from Professor Moos. Milton Eisenhower explained that one of the drafts of the speech referred to the ‘military-industrial-_Congressional complex’ and said that the president himself inserted the reference to the role of the Congress, an element that did not appear in the delivery of the farewell address._
When the president’s brother asked about the dropped reference to Congress, the president replied: ‘It was more than enough to take on the military and private industry. I couldn’t take on the Congress as well.’”
In addition to the Congress reference, an entire section was dropped from the speech that dealt with the creation of a ‘permanent, war-based industry,’ with ‘flag and general officers retiring at an early age [to] take positions in the war-based industrial complex shaping its decisions and guiding the direction of its tremendous thrust.’”
The president warned that steps needed to be taken to ‘insure that the “merchants of death” do not come to dictate national policy.’”
The section also warned against any belief that some ‘spectacular and costly action could become the miraculous solution to all current difficulties.’ ”
—Eisenhower’s Neglected Warning, by former CIA analyst Melvin A. Goodman
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Complete text to Eisenhower’s Farewell Speech (aka Military-Industrial Complex Speech) as delivered to the Nation via television on 17 January, 1961.