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A war profiteer is any person or organization that derives
profit Profit may refer to: Business and law * Profit (accounting), the difference between the purchase price and the costs of bringing to market * Profit (economics), normal profit and economic profit * Profit (real property), a nonpossessory inter ...
from warfare or by selling
weapon A weapon, arm or armament is any implement or device that can be used to deter, threaten, inflict physical damage, harm, or kill. Weapons are used to increase the efficacy and efficiency of activities such as hunting, crime, law enforcement, s ...
s and other goods to parties at war. The term typically carries strong negative connotations. General profiteering, making a profit criticized as excessive or unreasonable, also occurs in peacetime. An example of war profiteers were the "shoddy" millionaires who allegedly sold recycled wool and cardboard shoes to soldiers during the
American Civil War The American Civil War (April 12, 1861 – May 26, 1865; also known by Names of the American Civil War, other names) was a civil war in the United States. It was fought between the Union (American Civil War), Union ("the North") and t ...
. Some have argued that major modern defense conglomerates like
Lockheed Martin The Lockheed Martin Corporation is an American aerospace, arms, defense, information security, and technology corporation with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It ...
,
Boeing The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and ...
,
BAE Systems BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenue ...
, General Dynamics, and Raytheon fit the description in the post-9/11 era. This argument is based in the political influence of the defense industry, for example in 2010 the defense industry spent $144 million on
lobbying In politics, lobbying, persuasion or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies. Lobbying, whic ...
and donated over $22.6 million to congressional candidates, as well as large profits for defense company shareholders in the post-9/11 period.


History


American Revolution

There were a number of food riots during the
American Revolution The American Revolution was an ideological and political revolution that occurred in British America between 1765 and 1791. The Americans in the Thirteen Colonies formed independent states that defeated the British in the American Revoluti ...
against profiteering merchants, there were more than thirty riots in the period between 1776 and 1779. In 1777 a mob of
Boston Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...
women beat the merchant Thomas Boylston and confiscated his stock for hoarding coffee and sugar to drive up the price. In
East Hartford, Connecticut East Hartford is a town in Hartford County, Connecticut, United States. The population was 51,045 at the 2020 census. The town is located on the east bank of the Connecticut River, directly across from Hartford, Connecticut. It is home to aero ...
a mob of twenty women and three men took 218lbs of sugar from a Mr. Pitkin's. In
Beverly, Massachusetts Beverly is a city in Essex County, Massachusetts, and a suburb of Boston. The population was 42,670 at the time of the 2020 United States Census. A resort, residential, and manufacturing community on the Massachusetts North Shore, Beverly incl ...
a mob of 60 women and some additional men forced local merchants to charge the same price for sugar in American paper money and gold coin.


Industrial Revolution

In 1798, American inventor Eli Whitney received a government contract to manufacture 10,000 muskets in less than two years. After failing to produce a single musket, he was called to Washington to defend his expenditure of the treasury funds before a committee that included both
John Adams John Adams (October 30, 1735 – July 4, 1826) was an American statesman, attorney, diplomat, writer, and Founding Fathers of the United States, Founding Father who served as the second president of the United States from 1797 to 1801. Befor ...
and
Thomas Jefferson Thomas Jefferson (April 13, 1743 – July 4, 1826) was an American statesman, diplomat, lawyer, architect, philosopher, and Founding Fathers of the United States, Founding Father who served as the third president of the United States from 18 ...
. Believing to demonstrate the ingenuity of interchangeable parts, Whitney earned widespread support and has been incorrectly credited with inventing the idea of interchangeable parts. However Merritt Roe Smith concluded that this demonstration was staged by marking the parts beforehand, so they were not as interchangeable as he made them seem. Eventually Whitney was able to accomplish his goal of 10,000 muskets with interchangeable parts at a relatively low cost in the next 8 years, and later produced more than 15,000 in the following 4 years.


Military–industrial complex

A prominent example of the impact arms-producing industries have over American policy is evident in the case of Lockheed Martin donating $75,000 to House Armed Services Committee chair Representative Mac Thornberry (R-TX). Rep. Thornberry later passed a bill through the House of Representatives that would benefit Lockheed Martin. This decision was made as a direct result of the influence of Lockheed Martin. Politico has stated Rep. Thornberry is the "highest overall recipient of contractor contributions among all of the 89 members of the House and Senate Armed Services Committees."


Contemporary manufacturing

Currently, the United States is the world's largest weapons manufacturer and exporter, followed by Russia, France, Germany, China and the United Kingdom consecutively.


International arms dealers

Others make their money by cooperating with the authorities. Basil Zaharoff's
Vickers Vickers was a British engineering company that existed from 1828 until 1999. It was formed in Sheffield as a steel foundry by Edward Vickers and his father-in-law, and soon became famous for casting church bells. The company went public i ...
Company sold weapons to all the parties involved in the Chaco War. Companies like
Opel Opel Automobile GmbH (), usually shortened to Opel, is a German automobile manufacturer which has been a subsidiary of Stellantis since 16 January 2021. It was owned by the American automaker General Motors from 1929 until 2017 and the PSA Grou ...
and IBM have been labeled war profiteers for their involvement with the Third Reich. In the case of IBM they developed technologies that were used to count, catalog, and select Jewish people whom could then be targeted for efficient asset confiscation, consolidation in ghettos, deportation, enslaved labor, and, ultimately, annihilation.


Commodity dealers

War usually leads to a shortage in the supply of commodities, which results in higher prices and higher revenues. When it comes to
supply and demand In microeconomics, supply and demand is an economic model of price determination in a Market (economics), market. It postulates that, Ceteris paribus, holding all else equal, in a perfect competition, competitive market, the unit price for a ...
in terms of economics, profit is the most important end. During war time, "war-stuff" is in high demand, and demands must be met. Prior to the
invasion of Iraq in 2003 The 2003 invasion of Iraq was a United States-led invasion of the Ba'athist Iraq, Republic of Iraq and the first stage of the Iraq War. The invasion phase began on 19 March 2003 (air) and 20 March 2003 (ground) and lasted just over one mont ...
, oil production was controlled by the Iraqi government, and was off limits to Western companies. As of 2014, foreign owned private firms dominate Iraqi oil production.


Civilian contractors

Private military contractor A private military company (PMC) or private military and security company (PMSC) is a private company providing armed combat or security services for financial gain. PMCs refer to their personnel as "security contractors" or "private militar ...
s, including civilian contractors, are businesses that supply weapons and training to the military, and also handle logistics and base management. While private military contractors may seem similar to
mercenaries A mercenary, sometimes Pseudonym, also known as a soldier of fortune or hired gun, is a private individual, particularly a soldier, that joins a military conflict for personal profit, is otherwise an outsider to the conflict, and is not a memb ...
, the difference is that
mercenaries A mercenary, sometimes Pseudonym, also known as a soldier of fortune or hired gun, is a private individual, particularly a soldier, that joins a military conflict for personal profit, is otherwise an outsider to the conflict, and is not a memb ...
operate illegally. More recently, companies involved with supplying the coalition forces in the
Iraq War {{Infobox military conflict , conflict = Iraq War {{Nobold, {{lang, ar, حرب العراق (Arabic) {{Nobold, {{lang, ku, شەڕی عێراق (Kurdish languages, Kurdish) , partof = the Iraq conflict (2003–present), I ...
, such as
Bechtel Bechtel Corporation () is an American engineering, procurement, construction, and project management company founded in San Francisco, California, and headquartered in Reston, Virginia. , the '' Engineering News-Record'' ranked Bechtel as the se ...
, KBR, Academi (formerly known as Blackwater) and Halliburton, have come under fire for allegedly overcharging for their services. The modern private military company is also offered as an example of sanctioned war profiteering. On the opposing side, companies like Huawei Technologies, which upgraded Saddam's air-defense system between the two Gulf Wars, face such accusations.


Black marketeers

A distinction can be made between war profiteers who gain by sapping military strength and those who gain by contributing to the war. For instance, during and after
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
, enormous profits were available by selling rationed goods like
cigarette A cigarette is a narrow cylinder containing a combustible material, typically tobacco, that is rolled into thin paper for smoking. The cigarette is ignited at one end, causing it to smolder; the resulting smoke is orally inhaled via the opp ...
s,
chocolate Chocolate is a food made from roasted and ground cacao seed kernels that is available as a liquid, solid, or paste, either on its own or as a flavoring agent in other foods. Cacao has been consumed in some form since at least the Olmec ci ...
,
coffee Coffee is a drink prepared from roasted coffee beans. Darkly colored, bitter, and slightly acidic, coffee has a stimulating effect on humans, primarily due to its caffeine content. It is the most popular hot drink in the world. Seeds of ...
and
butter Butter is a dairy product made from the fat and protein components of churned cream. It is a semi-solid emulsion at room temperature, consisting of approximately 80% butterfat. It is used at room temperature as a spread, melted as a condim ...
on the
black market A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by noncompliance with an institutional set of rules. If the rule defines the ...
. Dishonest military personnel given oversight over valuable property sometimes diverted rationed goods to the black market. The charge could also be laid against medical and legal professionals who accept money in exchange for helping young men and nascent politicians evade a draft.


The state

Though war initially had the objective of territorial expansion and resource gathering, the country may also profit politically and strategically, replacing governments that do not fulfill its interests by key allied governments. One example of this is the CIA supporting the
Contras The Contras were the various U.S.-backed and funded right-wing rebel groups that were active from 1979 to 1990 in opposition to the Marxist Sandinista Junta of National Reconstruction Government in Nicaragua, which came to power in 1979 foll ...
with weapons to carry out terror attacks against the Nicaraguan government between the late 1970s and early 1990s.


Politicians

Political figures taking bribes and favors from corporations involved with war production have been called war profiteers.
Abraham Lincoln Abraham Lincoln ( ; February 12, 1809 – April 15, 1865) was an American lawyer, politician, and statesman who served as the 16th president of the United States from 1861 until his assassination in 1865. Lincoln led the nation throu ...
's first Secretary of War, Simon Cameron, was forced to resign in early 1862 after charges of corruption relating to war contracts. In 1947, Kentucky congressman
Andrew J. May Andrew Jackson May (June 24, 1875 – September 6, 1959) was a Kentucky attorney, an influential New Deal-era politician, and chairman of the House Military Affairs Committee during World War II, infamous for his rash disclosure of classified na ...
, Chairman of the powerful Committee on Military Affairs, was convicted for taking bribes in exchange for war contracts. In 1953 the United States began a covert mission to overthrow the Guatemalan government under Jacobo Arbenez. The process began with the United States labeling the government of Guatemala as a communist government. According to William Blum the reason for the United States’ intervention into Guatemala is that it was pushed by lobbyist from the United Fruit Company. The United Fruit Company had significant holdings within Guatemala and when the government decided to compete with the company this would not be accepted. Numerous officials such as President Eisenhower's Under-Secretary of State (and formerly director of the CIA) Walter Bedell Smith was a candidate for an executive position in the company while at the same time he was helping to plan the intervention. This coup was successful and the United Fruit Company was able to keep its holdings within Guatemala thus ensuring its profits were secure. This is typical of the sort of engagements that the U.S became involved in during the cold war that resulted in war profiteering. Modern-day war profiteering among politicians has increased with the recent wars in Iraq and Afghanistan. According to an article by ''
USA Today ''USA Today'' (stylized in all uppercase) is an American daily middle-market newspaper and news broadcasting company. Founded by Al Neuharth on September 15, 1982, the newspaper operates from Gannett's corporate headquarters in Tysons, Virgini ...
'' in 2011 the top 100 largest contractors sold 410 billion dollars’ worth of arms and services. Within this massive expense of services has evolved what is called the
revolving door A revolving door typically consists of three or four doors that hang on a central shaft and rotate around a vertical axis within a cylindrical enclosure. Revolving doors are energy efficient as they, acting as an airlock, prevent drafts, thus de ...
. This revolving door has not differentiated between the two political parties. An example of this revolving door is the case of
William J. Lynn III William James Lynn III (born January 1, 1954) is a former United States Deputy Secretary of Defense. Before that he was Under Secretary of Defense (Comptroller) and a lobbyist for Raytheon. Life and career Lynn was born in Key West, Florida and ...
. In 2010 he was confirmed to serve as the number two man in
the Pentagon The Pentagon is the headquarters building of the United States Department of Defense. It was constructed on an accelerated schedule during World War II. As a symbol of the U.S. military, the phrase ''The Pentagon'' is often used as a metony ...
after he worked as a lobbyist for Raytheon. This example shows the process of a person joining the government, then being hired as a lobbyist, and back to government. The revolving door is still in existence to this day.


Scientific research

War provides demand for military technology modernization. Technologies originally designed for the military frequently also have non-military use. Both the state and corporations have gains from scientific research. One famous example is Siri, the artificially intelligent "personal assistant" programmed into
Apple An apple is an edible fruit produced by an apple tree (''Malus domestica''). Apple trees are cultivated worldwide and are the most widely grown species in the genus '' Malus''. The tree originated in Central Asia, where its wild ancest ...
devices since October 4, 2011. Siri was a spin-off of
CALO Calo, Caló, or Calò may refer to: * Caló language, the language of the Iberian Romani ** Iberian Kale (''calé''): *** Romani people in Spain, more frequently called ''gitanos'' *** Romani people in Portugal, more frequently called ''ciganos'' ...
, a project funded by the government military development group,
DARPA The Defense Advanced Research Projects Agency (DARPA) is a research and development agency of the United States Department of Defense responsible for the development of emerging technologies for use by the military. Originally known as the A ...
. CALO is an acronym that stands for "Cognitive Assistant that Learns and Organizes".


In the United States

The ''War Profiteering Prevention Act of 2007'' intended to create criminal penalties for war profiteers and others who exploit taxpayer-funded efforts in Iraq and elsewhere around the world. This act was introduced first on April 25, 2007, but was never enacted into law. War profiteering cases are often brought under the Civil False Claims Act, which was enacted in 1863 to combat war profiteering during the Civil War. Major General Smedley Butler, USMC, criticized war profiteering of US companies during World War I in '' War Is a Racket''. He wrote about how some companies and corporations increase their earnings and profits by up to 1,700 percent and how many companies willingly sold equipment and supplies to the US that had no relevant use in the war effort. In the book, Butler stated that "It has been estimated by statisticians and economists and researchers that the war cost your Uncle Sam $52,000,000,000. Of this sum, $39,000,000,000 was expended in the actual war period. This expenditure yielded $16,000,000,000 in profits." In the American Civil War, concerns about war profiteering were not limited to the activities of a few "shoddy" millionaires in the North. In the Confederacy, where supplies were severely limited, and hardships common, the mere suggestion of profiteering was considered a scurrilous charge. Georgia Quartermaster General Ira Roe Foster attempted to increase the supply of material to the troops by urging the women of his state to knit 50,000 pairs of socks. Foster's sock campaign stimulated the supply of the much needed item, but it also met with a certain amount of suspicion and backlash. Either the result of a Union
disinformation Disinformation is false information deliberately spread to deceive people. It is sometimes confused with misinformation, which is false information but is not deliberate. The English word ''disinformation'' comes from the application of the ...
campaign, or the work of suspicious minds,
rumor A rumor (American English), or rumour (British English; see spelling differences; derived from Latin:rumorem - noise), is "a tall tale of explanations of events circulating from person to person and pertaining to an object, event, or issue in p ...
s, which Foster denied as a "malicious falsehood!", began to spread that Foster and others were profiteering from the socks. It was alleged that contributed socks were being sold, rather than given freely to the troops. The charge was not without precedent. The historian Jeanie Attie notes that in 1861, an "especially damaging rumor" (later found to be true) had circulated in the North, alleging that the Union Army had purchased 5,000 pairs of socks which had been donated, and intended for the troops, from a private relief agency, the
United States Sanitary Commission The United States Sanitary Commission (USSC) was a private relief agency created by federal legislation on June 18, 1861, to support sick and wounded soldiers of the United States Army (Federal / Northern / Union Army) during the American Civil ...
. As the Sanitary Commission had done in the North, Foster undertook a propaganda campaign in Georgia newspapers to combat the damaging rumors and to encourage the continued contribution of socks. He offered $1,000.00 to any "citizen or soldier who will come forward and prove that he ever bought a sock from this Department that was either knit by the ladies or purchased for issue to said troops."


Iraq War profiteers

Companies such as Halliburton have been criticized in the context of the
Iraq War {{Infobox military conflict , conflict = Iraq War {{Nobold, {{lang, ar, حرب العراق (Arabic) {{Nobold, {{lang, ku, شەڕی عێراق (Kurdish languages, Kurdish) , partof = the Iraq conflict (2003–present), I ...
for their perceived war profiteering. Steven Clemons, a senior fellow at the
New America Foundation New America, formerly the New America Foundation, is a think tank in the United States founded in 1999. It focuses on a range of public policy issues, including national security studies, technology, asset building, health, gender, energy, educ ...
think tank A think tank, or policy institute, is a research institute that performs research and advocacy concerning topics such as social policy, political strategy, economics, military, technology, and culture. Most think tanks are non-govern ...
, has accused former
CIA Director The director of the Central Intelligence Agency (D/CIA) is a statutory office () that functions as the head of the Central Intelligence Agency, which in turn is a part of the United States Intelligence Community. Beginning February 2017, the D ...
James Woolsey Robert James Woolsey Jr. (born September 21, 1941) is an American political appointee who has served in various senior positions. He headed the Central Intelligence Agency as Director of Central Intelligence from February 5, 1993, until January 1 ...
of both profiting from and promoting the
Iraq War {{Infobox military conflict , conflict = Iraq War {{Nobold, {{lang, ar, حرب العراق (Arabic) {{Nobold, {{lang, ku, شەڕی عێراق (Kurdish languages, Kurdish) , partof = the Iraq conflict (2003–present), I ...
. The Center for Public Integrity has reported that US Senator
Dianne Feinstein Dianne Goldman Berman Feinstein ( ; born Dianne Emiel Goldman; June 22, 1933) is an American politician who serves as the senior United States senator from California, a seat she has held since 1992. A member of the Democratic Party, she wa ...
, who voted in favor of the
Iraq Resolution The Authorization for Use of Military Force Against Iraq Resolution of 2002,Richard Blum, are making millions of dollars from Iraq and Afghanistan contracts through his company,
Tutor Perini Corporation Tutor Perini Corporation (formerly Perini Corporation) is one of the largest general contractors in the United States. At the end of 2013, it reported annual revenue of approximately $4.2 billion. Tutor Perini is headquartered in Sylmar, Cal ...
. Financial disclosure forms indicate that as of January 2020 51 members of Congress and their partners own between $2.3 and $5.8 million of stock in the top 30 corporations that sell goods and services to the U.S. military. Indicted defense contractor Brent R. Wilkes was reported to be ecstatic when hearing that the United States was going to go to war with Iraq. "He and some of his top executives were really gung-ho about the war," said a former employee. "Brent said this would create new opportunities for the company. He was really excited about doing business in the Middle East." One of the top profiteers from the
Iraq War {{Infobox military conflict , conflict = Iraq War {{Nobold, {{lang, ar, حرب العراق (Arabic) {{Nobold, {{lang, ku, شەڕی عێراق (Kurdish languages, Kurdish) , partof = the Iraq conflict (2003–present), I ...
was oil field services corporation, Halliburton. Halliburton gained $39.5 billion in "federal contracts related to the Iraq war". Many individuals have asserted that there were profit motives for the Bush-Cheney
administration Administration may refer to: Management of organizations * Management, the act of directing people towards accomplishing a goal ** Administrative Assistant, traditionally known as a Secretary, or also known as an administrative officer, admini ...
to invade Iraq in 2003.
Dick Cheney Richard Bruce Cheney ( ; born January 30, 1941) is an American politician and businessman who served as the 46th vice president of the United States from 2001 to 2009 under President George W. Bush. He is currently the oldest living former ...
served as Halliburton's CEO from 1995 until 2000. Cheney claimed he had cut ties with the corporation although, according to a CNN report, "Cheney was still receiving about $150,000 a year in deferred payments." Cheney vowed to not engage in a conflict of interest. However, the Congressional Research Office discovered Cheney held 433,000 Halliburton stock options while serving as Vice President of the United States. 2016 Presidential Candidate, Rand Paul referenced Cheney's interview with the American Enterprise Institute in which Cheney said invading Iraq "would be a disaster, it would be vastly expensive, it would be civil war, we'd have no exit strategy...it would be a bad idea". Rand continues by concluding "that's why the first Bush didn't go into
Baghdad Baghdad (; ar, بَغْدَاد , ) is the capital of Iraq and the second-largest city in the Arab world after Cairo. It is located on the Tigris near the ruins of the ancient city of Babylon and the Sassanid Persian capital of Ctesiphon ...
. Dick Cheney then goes to work for Halliburton. Makes hundreds of millions of dollars- their CEO. Next thing you know, he's back in government, it's a good idea to go into Iraq." Another prominent critic is Huffington Post co-founder, Arianna Huffington. Huffington said, "We have the poster child of Bush-Cheney
crony capitalism Crony capitalism, sometimes called cronyism, is an economic system in which businesses thrive not as a result of free enterprise, but rather as a return on money amassed through collusion between a business class and the political class. This i ...
, Halliburton, involved in this. They, after all, were responsible for cementing the well."


Afghanistan War

During the Afghanistan War, defense sector stocks outperformed the average of the
stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, ...
by 58%. Commentators put into question whether the 2021 Taliban takeover of Afghanistan could be considered a failure for the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
. Jon Schwarz of ''
The Intercept ''The Intercept'' is an American left-wing news website founded by Glenn Greenwald, Jeremy Scahill, Laura Poitras and funded by billionaire eBay co-founder Pierre Omidyar. Its current editor is Betsy Reed. The publication initially report ...
'' argued that "These numbers suggest that it is incorrect to conclude hat theAfghanistan War was a failure. On the contrary, from the perspective of some of the most powerful people in the U.S., it may have been an extraordinary success. Notably, the boards of directors of all opfive defense contractors include retired top-level military officers." From 2007, there were regularly more contractors than U.S. forces in
Afghanistan Afghanistan, officially the Islamic Emirate of Afghanistan,; prs, امارت اسلامی افغانستان is a landlocked country located at the crossroads of Central Asia and South Asia. Referred to as the Heart of Asia, it is borde ...
. By 2016,
private contractor Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any o ...
s outnumbered US state personnel three to one. In 2016, the
Harris Corporation Harris Corporation was an American technology company, defense contractor, and information technology services provider that produced wireless equipment, tactical radios, electronic systems, night vision equipment and both terrestrial and spac ...
was awarded a $1.7 billion contract to supply communications equipment to Afghan security forces.


War in Ukraine

The major oil and gas companies, including Shell,
ExxonMobil ExxonMobil Corporation (commonly shortened to Exxon) is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller's Standard Oil, and was formed on November 3 ...
,
Chevron Chevron (often relating to V-shaped patterns) may refer to: Science and technology * Chevron (aerospace), sawtooth patterns on some jet engines * Chevron (anatomy), a bone * '' Eulithis testata'', a moth * Chevron (geology), a fold in rock la ...
,
Phillips 66 The Phillips 66 Company is an American multinational energy company headquartered in Westchase, Houston, Texas. Its name, dating back to 1927 as a trademark of the Phillips Petroleum Company, helped ground the newly reconfigured Phillips 66. T ...
, BP and
Sinopec China Petroleum & Chemical Corporation (中国石油化工股份有限公司) or Sinopec (), is a Chinese oil and gas enterprise based in Beijing. It is listed in Hong Kong and also trades in Shanghai. Sinopec Limited's parent, Sinopec ...
, and the major weapon manufacturers, such as Raytheon,
Lockheed Martin The Lockheed Martin Corporation is an American aerospace, arms, defense, information security, and technology corporation with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It ...
and
BAE Systems BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenue ...
, reported sharp rises in interim revenues and profits. The term "ABCD" refers to the four companies – ADM, Bunge,
Cargill Cargill, Incorporated, is a privately held American global food corporation based in Minnetonka, Minnesota, and incorporated in Wilmington, Delaware. Founded in 1865, it is the largest privately held corporation in the United States in te ...
and Louis Dreyfus – that dominate world agricultural commodity trading. The ABCD commodity-trading companies have seen large profits as a result of the war in Ukraine and rising food prices. In March 2022, '' Bloomberg'' reported that
China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...
was reselling its US LNG shipments to a desperate Europe at a "hefty profit".
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area, the List of countries and dependencies by population, second-most populous ...
was buying discounted oil from Russia.
Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the Ara ...
also increased imports of discounted Russian oil. In September 2022, German Economy Minister Robert Habeck accused the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
and other "friendly" gas supplier nations that they were profiting from the Ukraine war with "astronomical prices". He called for more solidarity by the US to assist energy-pressed allies in Europe. In April 2022,
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...
supplied 45% of EU's gas imports, earning $900 million a day. In the first two months after Russia invaded Ukraine, Russia earned $66.5 billion from fossil fuel exports, and the EU accounted for 71% of that trade.


In popular culture

The term 'war profiteer' evokes two stereotypes in popular culture: the rich businessman who sells weapons to governments, and the semi-criminal
black market A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by noncompliance with an institutional set of rules. If the rule defines the ...
eer who sells goods to ordinary citizens. In English-speaking countries this is particularly associated with Britain during
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
. The image of the 'businessman profiteer' carries the implication of influence and power used to actively cause wars for personal gain, rather than merely passively profit from them. In the aftermath of
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was List of wars and anthropogenic disasters by death toll, one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, ...
, such profiteers were widely asserted to have existed by both the Left, and the
Right Rights are legal, social, or ethical principles of freedom or entitlement; that is, rights are the fundamental normative rules about what is allowed of people or owed to people according to some legal system, social convention, or ethical ...
. Fictional character Lieutenant
Milo Minderbinder First Lieutenant Milo Minderbinder is a fictional character in Joseph Heller's 1961 novel, ''Catch-22''. As the mess officer of Yossarian's squadron, Minderbinder is an entrepreneur during World War II, "perhaps the best known of all fictional bu ...
in the novel ''
Catch-22 ''Catch-22'' is a satirical war novel by American author Joseph Heller. He began writing it in 1953; the novel was first published in 1961. Often cited as one of the most significant novels of the twentieth century, it uses a distinctive non- ...
'' has been called "perhaps the best known of all fictional profiteers" in American literature.Stuart Dean Brandes: ''Warhogs: a history of war profits in America''. University Press of Kentucky, 1997, , p. 273 '' The Adventures of Tintin'' comic '' The Broken Ear'' features an arms dealer called Basil Bazarov who sells arms to both sides in a war. He is a recognisable example of this "type" and is specifically based on Basil Zaharoff.
Bertolt Brecht Eugen Berthold Friedrich Brecht (10 February 1898 – 14 August 1956), known professionally as Bertolt Brecht, was a German theatre practitioner, playwright, and poet. Coming of age during the Weimar Republic, he had his first successes as a p ...
wrote the play ''
Mother Courage and Her Children ''Mother Courage and Her Children'' (german: Mutter Courage und ihre Kinder, links=no) is a play written in 1939 by the German dramatist and poet Bertolt Brecht (1898–1956), with significant contributions from Margarete Steffin. Four theatrical ...
'' as a didactic indictment of war profiteering. Daddy Warbucks was a war profiteer. In the 1985 film '' Clue'', Colonel Mustard was a war profiteer who sold stolen radio components on the black market. The film '' The Third Man'' features a war profiteer named Harry Lime, who steals penicillin from military hospitals and sells it on the
black market A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by noncompliance with an institutional set of rules. If the rule defines the ...
. The film ''
Lord of War ''Lord of War'' is a 2005 American crime drama film written, produced, and directed by Andrew Niccol, and co-produced by and starring Nicolas Cage. The film was released in the United States on September 16, 2005, to positive reviews and gros ...
'' is a fictional story based on the war profiteer named Viktor Bout, who illegally sold post-Soviet arms to Liberia and other nations in conflict. The Suicide Machines released their 2005 album, entitled '' War Profiteering Is Killing Us All''. In the 2011 film '' Sherlock Holmes: A Game of Shadows'',
Professor Moriarty Professor James Moriarty is a fictional character and criminal mastermind created by Sir Arthur Conan Doyle to be a formidable enemy for the author's fictional detective Sherlock Holmes. He was created primarily as a device by which Doyle coul ...
acquires shares in many military supply companies and plots to instigate a world war and make a fortune. In Book 2 of
The Legend of Korra ''The Legend of Korra'' (abbreviated as TLOK), also known as ''Avatar: The Legend of Korra'' or simply ''Korra'', is an American anime-influenced animated television series created by Michael Dante DiMartino and Bryan Konietzko for Nickelode ...
, the character Varrick attempted to incite and encourage a civil war among the water tribes to make profit from selling weapons. The song " Masters of War" by
Bob Dylan Bob Dylan (legally Robert Dylan, born Robert Allen Zimmerman, May 24, 1941) is an American singer-songwriter. Often regarded as one of the greatest songwriters of all time, Dylan has been a major figure in popular culture during a career sp ...
is about war profiteering and the
military–industrial complex The expression military–industrial complex (MIC) describes the relationship between a country's military and the defense industry that supplies it, seen together as a vested interest which influences public policy. A driving factor behind the ...
. In the film '' Star Wars: The Last Jedi'', Finn,
Rose Tico Rose Tico is a fictional character in the '' Star Wars'' franchise, first appearing in the simultaneously released '' Star Wars: The Last Jedi'' and '' Cobalt Squadron'' (both 2017). A mechanic with the Resistance, she befriends Finn (John Bo ...
and BB-8 travel to Canto Bight, a coastal city catering to the galaxy's rich and elite. Finn is initially mesmerized by the city's glitz and glamour until Rose informs him that most of the city's inhabitants are war profiteers, having made their fortunes selling weapons and ships to the
First Order In mathematics and other formal sciences, first-order or first order most often means either: * "linear" (a polynomial of degree at most one), as in first-order approximation and other calculus uses, where it is contrasted with "polynomials of hi ...
and the Resistance. Also, the character of DJ shows Finn that the owner of the ship they're on made his profit selling weapons to the good guys (the Resistance) and the bad (the First Order). DJ then tells Finn that "it's all a machine" and that he should "Live free, don't join."


See also

* Companies by arms sales *
Mercenary A mercenary, sometimes also known as a soldier of fortune or hired gun, is a private individual, particularly a soldier, that joins a military conflict for personal profit, is otherwise an outsider to the conflict, and is not a member of any ...
*
Military–industrial complex The expression military–industrial complex (MIC) describes the relationship between a country's military and the defense industry that supplies it, seen together as a vested interest which influences public policy. A driving factor behind the ...
*
War hawk In politics, a war hawk, or simply hawk, is someone who favors war or continuing to escalate an existing conflict as opposed to other solutions. War hawks are the opposite of doves. The terms are derived by analogy with the birds of the same name ...
* '' War Is a Racket'' *
List of defense contractors A defense contractor is a business organization or individual that provides products or services to a military or intelligence department of a government. Products typically include military or civilian aircraft, ships, vehicles, weaponry, and ele ...
* Arms industry


Notes


External links


War is a Racket
{{DEFAULTSORT:War Profiteering Corruption Crimes Ethically disputed business practices Informal economy Profit Political terminology Warfare Property crimes