The military industrial complex is a scholarly recognized engine to create wealth. In World War II the American military industrial complex created manufacturing, logistics, labor and numerous sectors within America. The constant bombing of Europe destroyed infrastructure required to create necessities such as road material, building supplies, raw materials, refined products and food staples.
European companies lacked safety, reliable transport, & logistical chains. Banking centers stood frozen like glaciers in the arctic; unable to move or dynamically change. Strong arm tactics, government seizures and trade embargo prevented free commerce in many countries in and around Europe.
Many private sector companies were institutionalized, and wealth held by private citizens transferred to government custodians. Italian leader Mussolini progressively stripped away private ownership of cash flow producing free trade to increase government revenues to pay for war efforts. Mussolini followed Lenin’s example to create a state driven economy. In The Concise Encyclopedia of Economics, Sheldon Richman writes: “As an economic system, fascism is socialism with a capitalist veneer.”
The German Reich demanded loyalty to an emerging empire that saw its primary way of wealth increase through conquest, seizure, and pillage.
In many instances the economic engine of Nazi Germany was the same economic engine of Nordic Vikings or Roman Caesars. Goods, staples, and people (think of the Jewish Victims of the Holocaust) were enslaved to create wealth through conquest. Nazi Germany had many labor camps. Death camps existed but a more efficient way to eradicate the Jewish was to literally work them to death.
The framework of Russia consisted of a distorted form of communism that compelled those to serve Mother Russia during World War II. This form was adopted away from Lenin’s example to allow some form of capitalism. After Russia’s economy collapsed in 1921, Lenin allowed privatization and private initiative, and he let the people trade, buy and sell for private profit ( V. N. Bandera “New Economic Policy (NEP) as an Economic System,” The Journal of Political Economy, Vol. 71, №3 (June, 1963), 265–79: p. 268). The version of communism implemented by Stalin was a different idea than true communism. Communism is Utopian and seeks to remove inequality and share wealth evenly among all citizens.
The empire of Japan was led by an Emperor, seen as divine to its people, through a strongly traditional spiritual form of Shintoism. Within this Japanese culture an extreme compulsion to revive the code of Bushido permeated through Japan. Much of Japan focused on hardline imperialistic viewpoints of superiority justified by strong historical ties to 1) high morals, 2) high ethics, 3) honor, and 4) extreme discipline. Japanese complexes were derived by superior virtue adherence versus idealistic egoism hallucinated by personal feuds or mental complexes.
The United States insistence to isolate Japan by dissolving its Tripartite Pact (with Germany and Italy), withdrawing its troops from China and the USA imposing an oil embargo agitated the Japanese relationship into war. The United States affronted Japanese honor. USA actions left the Japanese with little option other than to attack Pearl Harbor. The attack was far from cowardly or unprovoked as cited in Britannica.
THE CULTURE & CONDITION OF AN AMERICAN ECONOMIC BOOM
The culture of a world in Pre-World War II was rooted in thousands year of historical human tendencies. These tendencies capitalized on the inefficiency of human labor.
Inefficiency combined with limited competition provided a perfect recipe for mass American wealth accumulation during World War II and shortly after World War II.
Within the chaos of fire and tank brimstone tracks stood the USA protected by two vast oceans, separated from neighboring incursions.
American people thrived off limited automation, smaller population, and no global competition for manufacturing. Price fixing was set, financing was one sided to America (no established World Bank, International Monetary Fund or United Nations financing) and war reparations flowed in the form of payments in precious metals.
America became rich off the demise of many, its wealth was spread around to a much smaller population, and no automation with technology meant substantial manual labor to perform tasks.
In my lifetime stockbrokers wrote tickets on a piece of paper to have it ran down the hallway to be data processed directly to the exchange. Reading the Wall Street Journal for current rates was a must and many trades had to be placed by directly “speaking” to a trade desk. Now wall street trades are all handled online.
Destroying infrastructure through war, rebuilding at one sided financing rates from the conquerors (no centralized authority to fairly legislate international money) and failing to have the automation to prevent massive labor requirements for company expansions is the perfect recipe for wealth accumulation by non-technologically advanced people. The Military Industrial Complex was a perfect tool in the times of my parents and grandparents.
Guggeneim’s opinion as reported by Sunny Oh on April 2019, stated the following:
“Guggenheim expects the S&P 500 to sink by 40–50% as economic recession takes hold as early as 2020”.
According to the ICI Researchable Report in 2016 approximately 6.9 trillion dollars of American wealth was held in Individual Retirement Accounts (IRA).
Approximately 16.6% of all United States Households before retirement age withdrew from IRAs to support basic necessities in a contracting stock market during the last 2008 recession. The age groups that withdrew were 52–61 (7.6%), 24–56 (6.1%), and a smaller margin composing pre-24.
It is my opinion the continual policy deployment of the Military Industrial Complex is decimating the wealth of the American people.
WEALTH DESTRUCTION IN LIEU OF WEALTH CREATION BY POLITICIANS
Today’s economic climate is driven by efficiency at lighting speed, increasingly limited human interaction, physical labor replacement through machines and legislative bodies that prevent one country from financing an entire country’s rebuilding.
Despite the policy change, both politically and through free market cost elimination techniques, our war mongering politicians imagine obsolete political approaches.
Iraq is the perfect example of America’s failure to accumulate wealth from war. After 17 years of Iraq presence America does not book Iraq’s oil fields as its own resources (through trade offsets, payment obligations, or tariffs), releases vast sums of financing in grant concessions or war payment reparations (essentially free money to say sorry for bombing you), is facing a non binding resolution seeking binding ratification by the Iraqi Senate to kick all troops out (due to the Iranian Assassination of Soleimani), and USA public debt stands at 22 trillion effective February 13, 2019. 5.9 trillion of our debt is due to war as cited by the Watson Institute. Approximately 26.8% of our public debt is attributed to the wars in Iraq and Afghanistan. When new debt is created more money is printed. As currency increases in our economy the American wealth of its people devalues.
The failed application of the Military Industrial Complex in Iraq and Afghanistan have decreased the American People’s wealth by nearly 27% from 2001–2019.
HOW COMPANIES FAIL TO HIRE NEW EMPLOYEES IN A TECH AGE
American contractors are being paid to rebuild Iraq with US Funds not Iraqi Funds. US Funds are being allocated as an increasing deficit on our country at the expense of US Taxpayers. The devaluation of our US Dollars is at an all-time high.
American contractors are saving tons of dollars by employing new robotics, advanced information systems, internet capabilities to limit human resource requirements. Companies are limiting their hiring instead of increasing their hiring. To compound the problem the US population has a larger work force unable to proportionately find jobs due to technological elimination. This conundrum compounds the issue and widens the gap between the 1% and the 99%.
According to the US National Bureau of Economic Research there are 1.75 robots for every 1,000 workers, with the number of American jobs permanently lost due to automation estimated to be no more than about 670,000. There is a total of 145,798,000 jobs currently available in the US.
Some economists predict that figure to multiply another four times by 2025 to 5.25 robots per 1,000 humans, contributing to a potential 3.4 million lost jobs. If you don’t understand exponential growth here it is…1.75 to 1,000 (2019) → 5.25 (2025)→ 21.00 (2030) →82.00 (2035) → 328.00 (2040) according the US National Bureau of Economic Research.
Instead of wealth accumulation for the American people wealth evaporation is taking hold as a result of failed ideology concerning the Military Industrial Complex.
Donald Trump may have understood that another war would make American people poorer. It is possible the analysis of economic impact of another war on America curtailed Trump’s rhetoric concerning an outright conflict with Iran. Despite having an American Military Installation assaulted by missiles of a state power it appears (at least temporarily) a conflict is stayed.
Iran is the first country since World War II to directly attack an established American Military base outside of its claimed local territory. Despite this brazen action (whether I agree with it or not is irrelevant it simply is a fact) the USA has for the first time taken a softer approach.
Trust me the issue is money.
WEALTH ACCUMULATION IN THE TECHNOLOGICAL AGE
I predict wealth accumulation in the Technological Age will be based off knowledge access, data aggregation, personnel monitoring and valuing abstract assets. Assets such as cryptocurrency, data analytics, block chain encryptions and data processing processors are assets existing in a series of electrical currents.
Intrinsic value of these assets is low, yet their nominal values are high. Companies such as Uber, Amazon Web Services, Apple, and Microsoft reach into the billions based on consumer demand for technology. The inability for aging politicians to understand wealth accumulation is detrimental to America. Wealth accumulation is 1) innovative, 2) derivative (deriving value from something other than itself), and 3) non intrinsic. Failure to direct government policy towards these assets means we have resources deploying to depreciating economic sectors.
Countries such as Singapore are embracing these concepts. Massive legislation is being passed to interpret new assets. America is still struggling to define what a cryptocurrency is and the SEC wants oversight to extort more civil fines to pay for its overreaching agency personnel.
WHERE TO FIND THE NEW WEALTH IN A TECH ECONOMY
Wealth accumulation for people is mined in the virtual fields of technology. Empowering people to function at more efficient levels through biological incorporation of technology is how future people will increase their net worth. As radical as it sounds, trust me the way to make people richer is by making them more like a computer.
Think microchips linked to thoughts to allow PC commands to execute faster, a contact lens worn to instantly recognize product competitors not wrapped or ear buds that navigate the web search engines for the most credible information on the spot to tell a CEO a key fact by voice command.
The way to create wealth for people is by incorporating technology into human bodies. As extreme as this sounds the only way for a person to literally be worth “more” is to make them “more”. This is not a new concept. Evolutionary time requires evolutionary thinking. If you are looking to create wealth in the next age you must try to understand how to be in the future. Applying age old principles works in ages of the past. Find ways to see where age old principles fit into ages of the future. Follow me on Medium or subscribe to my newsletter to learn more insightful advice on why my wealth building strategies actually work.
To your knowledge success!
About Christopher: Christopher Knight Lopez is a Professional Entrepreneur. Christopher has opened over 7 businesses in his 14-year career. Christopher’s purpose is to take advantage of various market-driven opportunities. Christopher is a certified Master Project Manager (MPM), Master Financial Planner (MFP) and Accredited Financial Analyst (AFA). Christopher previously held his Series 65 securities license. Christopher also has his General Lines — Life, Accident, Health & HMO. Christopher has managed a combined 286mm USD in reported Assets Under Management & Assets Under Advisement. Christopher has work experience in 29 countries, raised over 50mm USD for various businesses, and grossed over 7.5mm in his personal career. Christopher worked in the highly technical industries of: biotechnology, finance, securities, manufacturing, real estate, and residential mortgages. Christopher is a United States Air Force Veteran. Christopher has a passion for family, competitive sports, fishing, martial arts and advocacy for entrepreneurs. Christopher provides self-help classes for up-and-coming entrepreneurs. Christopher’s passion to mentor comes from belief that entrepreneurs need guidance. The world is full of conflicting information about entrepreneur identity. See more at www.christopherklopez.com.