I have been re-reading a book by sociologist C. Wright Mills from 1958 titled The Causes of World War III. Mills is famous for developing the power elite theory of U.S. politics. Mills identified three pillars of elite power concentrated in the political, economic and military spheres of U.S. society. Driven by what Mills called a “permanent war economy,” this elite power structure reinforced a “march to war” as a central feature of its existence. The linkages between the political, corporate and military elites were solidified within the U.S. during World War II, reducing politics to a hollow shell game of unaccountability with the growth of corporate power, the imperial presidency and a globalized military-industrial complex.
There is much to learn from Mills in assessing today’s military-industrial complex. An important caveat is that the power elite identified by Mills has always been more fractured and divided than his framework would allow for. I have been part of a group of scholars that have advanced a business conflict or, more recently, a transnational interest bloc conflict theory of capitalist power. This perspective argues that transnational corporations compete with each other based on on their sectoral and territorial location within global capitalism, a framework closely tied to the investment theory of political parties developed by Tom Ferguson, and advanced in various iterations by me and my frequent co-author Daniel Skidmore-Hess, as well as David Gibbs and James H. Nolt, to name a few. During Mills time, there was certainly an interdependency between the profits of dominant global corporations and the expansion of the military-industrial complex, but there was also business conflict around the extent, scope and purposes of military spending. This became especially evident with the Vietnam War escalation from 1965 to 1968, which fractured corporate blocs between those advocating for military escalation and those advocating for deescalation. The former were concentrated within sectors producing for the military or sectors benefiting directly from war spending versus financial sectors that had come to view the escalation of the Vietnam War as damaging to their portfolios.
My caveats aside: Mills did understand the exent to which the elite power structure served to drive the U.S. toward a permanent war economy. The accelerating growth of the military-industrial-intelligence-surveillance complex and the imperial presidency in recent decades has served to highlight the relevance of Mills’ power elite theory long after his passing in 1962. The ascendancy of the permanent war economy has reached new heights in current U.S. politics. Today the U.S. is spending more on global militarization than it did at the height of the Cold War, a trend enabled by a bipartisan political elite, a big tech investment bloc, an acceleration of private equity investment, and a highly consolidated bloc of military contractors that has globalized production and sales of military weapons with the support of powerful institutional investors such as BlackRock, Vanguard and State Street, who collectively hold stakes as high as 17 to 25 percent in the top five U.S. defense contractors. As William Robinson has noted, there is a push toward militarized capital accumulation on a global scale that transcends the old contours of the military-industrial complex analyzed by C. Wright Mills.
The permanent war economy has become even more central to capitalist accumulation of profits. This is especially evident when examining the extent to which the big tech sector in the U.S., Amazon Web Services, Google, Microsoft, Nvidia, OpenAI, SpaceX, Palantir Technologies, and Anduril Industries, have become heavily invested within the military-industrial-intelligence-surveillance complex. As was the case during the Cold War, U.S. military spending is used to subsidize leading sectors of the global capitalist economy, providing sources of finance for big tech firms whose militarization of capital accumulation is providing them with greater concentration of power and privilege. It’s here that we see the clearest relevance of the work of C. Wright Mills to the present global expansion of U.S. militarism. As Mills would have expected, absent guardrails of popular dissent, this current system of militarized accumulation is driven by a constellation of elite interests whose positions within the hierarchy of state and capitalist power structures contribute to unchecked wars and genocide.
In my next blog post, I will talk about the political and economic instability of this global system of militarized accumulation, which rests on a shaky foundation of imperial overreach, rising domestic and global opposition to U.S. empire, and an unsustainable balance sheet of overvalued stocks that portend a market crash of the big tech sector that has been so central to the hyper-growth of the stock market. Once this economic crisis manifests itself as a deepening political and social crisis, the battle over who will pick up the costs and who will seize distressed assets will shape the political fights ahead. As Mills would have understood, the role of intellectuals here is not to engage in “business as usual” but to use their positions as advocates for the public good, positioning us with popular struggles capable of checking corporate power and securing more resources and political/economic capital for the vast majority that have been exploited and oppressed by this global capitalist system.
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