Article: How the CIA Created a Ruling, Corporate Overclass in America

The result is a form of corporate serfdom if not slavery.

The wealthy have always used many methods to accumulate wealth, but it was not until the mid-1970s that these methods coalesced into a superbly organized, cohesive and efficient machine. After 1975, it became greater than the sum of its parts, a smooth flowing organization of advocacy groups, lobbyists, think tanks, conservative foundations, and PR firms that hurtled the richest 1 percent into the stratosphere.
--Steve Kangas, The Origins of the Overclass

The Bush administration will be forever associated with a "ruling overclass" --oligarchs who were the sole beneficiaries of Ronald Reagan's infamous tax cut of 1982 and, later, several equally inequitable tax cuts during the Bush regime. It is no coincidence that the oligarchs likewise benefited in various ways from Bush's military adventures in the Middle East. GOP tax cuts are typically called "trickle down" theory. Reagan's Budget Director David Stockman called the theory that justifies them a "trojan horse". Since Ronald Reagan's infamous tax cut of 1982, "conservatives" myopically cite a mythical "Reagan Recovery" as proof of "Reaganomics", otherwise called supply-side economics. The right wing argument is simplistic and fallacious. It must be pointed out that following the tax cut, the nation plunged into recession, the worst since Herbert Hoover's Great Depression of 1929. Nevertheless, conservatives will persist in citing a three percent growth rate following two years of severe recession as proof that "wealth trickles down". This assertion fails to address key questions. Who benefited from the recovery? At some 3 percent how long did it take for the nation to regain lost ground? Did Reagan's tax cuts bring about more growth than would have normally occurred? The record shows that between 1979 and 1989 the growth rate was 3% --the same as the growth rate between 1973 and 1979! There was, then, no improvement with "voodoo economics" than without it. There was no "Reagan recovery"! Wealth did not trickloe down; it flowed upward at alarming rates. The nation had been plunged unnecessarily into recession upon a pack of lies. The only beneficiaries were those who were rich already. However hard you may look, you will not find in the cold hard stats any confirmation of GOP/Reaganomics whatsoever. Go to the Bureau of Labor Statistics, the Census Bureau, the BEA! You will find, rather, confirmation of a more pernicious trend: the rich began to get even richer. The poor began to lose ground at alarming rates. It seems almost to have been deliberate. The late Steve Kangas believed it was deliberate just as I believe that the war against Iraq is a payoff to the robber barons that make up the Military/Industrial complex about which President Eisenhower warned. Later, JFK would warn of the dangers posed by the CIA, which he proposed to "smash into a thousand pieces". The following essay by the late Steve Kangas should be required reading. He makes the bullet proof case that the enrichment of the "overclass" is the work of radical "conservatives" who knew at the time that "trickle down" hardly describes the effect of inequitable tax cuts. Kangas' is supported by Ronald Reagan's own Budget Director, David Stockman, who later called "Reaganomics" a "trojan horse" insisted upon by radicals, a "noisy faction of Republicans"! Kangas' work is a classic. Kangas himself was found shot to death just outside the office of the infamous Richard Mellon Scaife --the man who bankrolled the dubious attempt to buy witnesses against Bill Clinton! It is more than a mere footnote to history, that not even Scaife's millions succeeded in "buying" a single witness against Clinton. But I digress. The story that Kangas might well have paid for with his life is nothing less than the role played by the CIA in the creation of a permanent ruling "overclass" in America. Stockman was right. Supply-side, otherwise called "trickle down" theory, was indeed a trojan-horse, about which it was known that it would create and support a class of oppressive oligarchs. Following is Kangas' essay in its entirety.

The Origins of the Overclass By Steve Kangas The wealthy have always used many methods to accumulate wealth, but it was not until the mid-1970s that these methods coalesced into a superbly organized, cohesive and efficient machine. After 1975, it became greater than the sum of its parts, a smooth flowing organization of advocacy groups, lobbyists, think tanks, conservative foundations, and PR firms that hurtled the richest 1 percent into the stratosphere.

The origins of this machine, interestingly enough, can be traced back to the CIA. This is not to say the machine is a formal CIA operation, complete with code name and signed documents. (Although such evidence may yet surface - and previously unthinkable domestic operations such as MK-ULTRA, CHAOS and MOCKINGBIRD show this to be a distinct possibility.) But what we do know already indicts the CIA strongly enough. Its principle creators were Irving Kristol, Paul Weyrich, William Simon, Richard Mellon Scaife, Frank Shakespeare, William F. Buckley, Jr., the Rockefeller family, and more. Almost all the machine's creators had CIA backgrounds.

During the 1970s, these men would take the propaganda and operational techniques they had learned in the Cold War and apply them to the Class War. Therefore it is no surprise that the American version of the machine bears an uncanny resemblance to the foreign versions designed to fight communism. The CIA's expert and comprehensive organization of the business class would succeed beyond their wildest dreams. In 1975, the richest 1 percent owned 22 percent of America's wealth. By 1992, they would nearly double that, to 42 percent - the highest level of inequality in the 20th century.

How did this alliance start? The CIA has always recruited the nation's elite: millionaire businessmen, Wall Street brokers, members of the national news media, and Ivy League scholars. During World War II, General "Wild Bill" Donovan became chief of the Office of Strategic Services (OSS), the forerunner of the CIA. Donovan recruited so exclusively from the nation's rich and powerful that members eventually came to joke that "OSS" stood for "Oh, so social!"

Another early elite was Allen Dulles, who served as Director of the CIA from 1953 to 1961. Dulles was a senior partner at the Wall Street firm of Sullivan and Cromwell, which represented the Rockefeller empire and other mammoth trusts, corporations and cartels. He was also a board member of the J. Henry Schroeder Bank, with offices in Wall Street, London, Zurich and Hamburg. His financial interests across the world would become a conflict of interest when he became head of the CIA. Like Donavan, he would recruit exclusively from society's elite.

By the 1950s, the CIA had riddled the nation's businesses, media and universities with tens of thousands of part-time, on-call operatives. Their employment with the agency took a variety of forms, which included:

Leaving one's profession to work for the CIA in a formal, official capacity.
Staying in one's profession, using the job as cover for CIA activity. This undercover activity could be full-time, part-time, or on-call.
Staying in one's profession, occasionally passing along information useful to the CIA.
Passing through the revolving door that has always existed between the agency and the business world.

Historically, the CIA and society's elite have been one and the same people. This means that their interests and goals are one and the same as well. Perhaps the most frequent description of the intelligence community is the "old boy network," where members socialize, talk shop, conduct business and tap each other for favors well outside the formal halls of government.

Many common traits made it inevitable that the CIA and Corporate America would become allies. Both share an intense dislike of democracy, and feel they should be liberated from democratic regulations and oversight. Both share a culture of secrecy, either hiding their actions from the American public or lying about them to present the best public image. And both are in a perfect position to help each other.

How? International businesses give CIA agents cover, secret funding, top-quality resources and important contacts in foreign lands. In return, the CIA gives corporations billion-dollar federal contracts (for spy planes, satellites and other hi-tech spycraft). Businessmen also enjoy the romantic thrill of participating in spy operations. The CIA also gives businesses a certain amount of protection and privacy from the media and government watchdogs, under the guise of "national security." Finally, the CIA helps American corporations remain dominant in foreign markets, by overthrowing governments hostile to unregulated capitalism and installing puppet regimes whose policies favor American corporations at the expense of their people.

The CIA's alliance with the elite turned out to be an unholy one. Each enabled the other to rise above the law. Indeed, a review of the CIA's history is one of such crime and atrocity that no one can reasonably defend it, even in the name of anticommunism. Before reviewing this alliance in detail, it is useful to know the CIA's history of atrocity first.

The Crimes of the CIA
During World War II, the OSS actively engaged in propaganda, sabotage and countless other dirty tricks. After the war, and even after the CIA was created in 1947, the American intelligence community reverted to harmless information gathering and analysis, thinking that the danger to national security had passed. That changed in 1948 with the emergence of the Cold War. In that year, the CIA recreated its covert action wing, innocuously called the Office of Policy Coordination. Its first director was Wall Street lawyer Frank Wisner. According to its secret charter, its responsibilities included

propaganda, economic warfare, preventive direct action, including sabotage, antisabotage, demolition and evacuation procedures; subversion against hostile states, including assistance to underground resistance groups, and support of indigenous anti-communist elements in threatened countries of the free world.By 1953, the dirty tricks department of the CIA had grown to 7,200 personnel and commanded 74 percent of the CIA's total budget. The following quotes describe the culture of lawlessness that pervaded the CIA:

Stanley Lovell, a CIA recruiter for "Wild Bill" Donovan:

George Hunter White, writing of his CIA escapades: "I toiled wholeheartedly in the vineyards because it was fun, fun, fun... Where else could a red-blooded American boy lie, kill, cheat, steal, rape and pillage with the sanction and blessing of the all-highest?" (2)

A retired CIA agency caseworker with twenty years experience: "I never gave a thought to legality or morality. Frankly, I did what worked."

Blessed with secrecy and lack of congressional oversight, CIA operations became corrupt almost immediately. Using propaganda stations like Voice of America and Radio Free Europe, the CIA felt justified in manipulating the public for its own good. The broadcasts were so patently false that for a time it was illegal to publish transcripts of them in the U.S. This was a classic case of a powerful organization deciding what was best for the people, and then abusing the powers it had helped itself to.During the 40s and 50s, most of the public was unaware of what the CIA was doing. Those who knew thought they were fighting the good fight against communism, like James Bond. However, they could not keep their actions secret forever, and by the 60s and 70s, Americans began learning about the agency's crimes and atrocities. (3) It turns out the CIA has:

Corrupted democratic elections in Greece, Italy and dozens of other nations;
Been involved to varying degrees in at least 35 assassination plots against foreign heads of state or prominent political leaders. Successful assassinations include democratically elected leaders like Salvador Allende (Chile) and Patrice Lumumba (Belgian Congo); also CIA-created dictators like Rafael Trujillo (Dominican Republic) and Ngo Dinh Diem (South Vietnam); and popular political leaders like Che Guevara. Unsuccessful attempts range from Fidel Castro to Charles De Gaulle.
Helped launch military coups that toppled democratic governments, replacing them with brutal dictatorships or juntas. The list of overthrown democratic leaders includes Mossadegh (Iran, 1953), Arbenz (Guatemala, 1954), Velasco and Arosemena (Ecuador, 1961, 1963), Bosch (Dominican Republic, 1963), Goulart (Brazil, 1964), Sukarno (Indonesia, 1965), Papandreou (Greece, 1965-67), Allende (Chile, 1973), and dozens of others.
Undermined the governments of Australia, Guyana, Cambodia, Jamaica and more;
Supported murderous dictators like General Pinochet (Chile), the Shah of Iran, Ferdinand Marcos (Phillipines), "Papa Doc" and "Baby Doc" Duvalier (Haiti), General Noriega (Panama), Mobutu Sese Seko (Ziare), the "reign of the colonels" (Greece), and more;
Created, trained and supported death squads and secret police forces that tortured and murdered hundreds of thousands of civilians, leftists and political opponents, in Guatemala, Honduras, El Salvador, Haiti, Bolivia, Cuba, Mexico, Uruguay, Brazil, Chile, Vietnam, Cambodia, Thailand, Iran, Turkey, Angola and others;
Helped run the "School of the Americas" at Fort Benning, Georgia, which trains Latin American military officers how to overthrow democratic governments. Subjects include the use of torture, interrogation and murder;
Used Michigan State "professors" to train Diem's secret police in torture;
Conducted economic sabotage, including ruining crops, disrupting industry, sinking ships and creating food shortages;
Paved the way for the massacre of 200,000 in East Timor, 500,000 in Indonesia and one to two million in Cambodia;
Launched secret or illegal military actions or wars in Nicaragua, Angola, Cuba, Laos and Indochina;
Planted false stories in the local media;
Framed political opponents for crimes, atrocities, political statements and embarrassments that they did not commit;
Spied on thousands of American citizens, in defiance of Congressional law;
Smuggled Nazi war criminals and weapon scientists into the U.S., unpunished, for their use in the Cold War;
Created organizations like the World Anti-Communist League, which became filled with ex-Nazis, Nazi sympathizers, Italian terrorists, Japanese fascists, racist Afrikaaners, Latin American death squad leaders, CIA agents and other extreme right-wing militants;
Conducted Operation MK-ULTRA, a mind-control experiment that gave LSD and other drugs to Americans against their will or without their knowledge, causing some to commit suicide;
Penetrated and disrupted student antiwar organizations;
Kept friendly and extensive working relations with the Mafia;
Actively traded in drugs around the world since the 1950s to fund its operations. The Contra/crack scandal is only the tip of the iceberg -- other notorious examples include Southeast Asia's Golden Triangle and Noreiga's Panama.
Had their fingerprints all over the assassinations of John F. Kennedy, Robert F. Kennedy, Martin Luther King, Jr., and Malcom X. Even if the CIA is not responsible for these killings, the sheer amount of CIA involvement in these cases demands answers;
And then routinely lied to Congress about all of the above.

The Association for Responsible Dissent estimates that by 1987, 6 million people had died as a result of CIA covert operations. (4) Former State Department official William Blum correctly calls this an "American Holocaust."We should note that the CIA gets away with this because it is not accountable to democratic government. Former CIA officer Philip Agee put it best: "The CIA is the President's secret army." Prior to 1975, the agency answered only to the President (creating all the usual problems of authoritarianism). And because the CIA's activities were secret, the President rarely had to worry about public criticism and pressure. After the 1975 Church hearings, Congress tried to create congressional oversight of the CIA, but this has failed miserably. One reason is that the congressional oversight committee is a sham, filled with Cold Warriors, conservatives, businessmen, and even ex-CIA personnel. The Business Origins of CIA Crimes
Although many people think that the CIA's primary mission during the Cold War was to "deter communism," Noam Chomksy correctly points out that its real mission was "deterring democracy." From corrupting elections to overthrowing democratic governments, from assassinating elected leaders to installing murderous dictators, the CIA has virtually always replaced democracy with dictatorship. It didn't help that the CIA was run by businessmen, whose hostility towards democracy is legendary. The reason they overthrew so many democracies is because the people usually voted for policies that multi-national corporations didn't like: land reform, strong labor unions, nationalization of their industries, and greater regulation protecting workers, consumers and the environment.

So the CIA's greatest "successes" were usually more pro-corporate than anti-communist. Citing a communist threat, the CIA helped overthrow the democratically elected Mohammed Mussadegh government in Iran in 1953. But there was no communist threat - the Soviets stood back and watched the coup from afar. What really happened was that Mussadegh threatened to nationalize British and American oil companies in Iran. Consequently, the CIA and MI6 toppled Mussadegh and replaced him with a puppet government, headed by the Shah of Iran and his murderous secret police, SAVAK. The reason why the Ayatollah Khomeini and his revolutionaries took 52 Americans hostage in Tehran in 1979 was because the CIA had helped SAVAK torture and murder their people.

Another "success" was the CIA's overthrow of the democratically elected government of Jacabo Arbenz in Guatemala in 1954. Again, there was no communist threat. The real threat was to Guatemala's United Fruit Company, a Rockefeller-owned firm whose stockholders included CIA Director Allen Dulles. Arbenz threatened to nationalize the company, albeit with generous compensation. In response, the CIA initiated a coup that overthrew Arbenz and installed the murderous dictator Castillo Armas. For four decades, CIA-backed dicatators would torture and murder hundreds of thousands of leftists, union members and others who would fight for a more equitable distribution of the country's resources.

Another "success" story was Chile. In 1973, the country's democratically elected leader, Salvadore Allende, nationalized foreign-owned interests, like Chile's lucrative copper mines and telephone system. International Telephone & Telegraph (ITT) offered the CIA $1 million to overthrow Allende - which the CIA allegedly refused - but paid $350,000 to his political opponents. The CIA responded with a coup that murdered Allende and replaced him with a brutal tyrant, General Augusto Pinochet. Pinochet tortured and murdered thousands of leftists, union members and political opponents as economists trained at the University of Chicago under Milton Friedman installed a "free market" economy. Since then, income inequality has soared higher in Chile than anywhere else in Latin America.

Even when the communist threat was real, the CIA first and foremost took care of the elite. In testimony before Congress in the early 50s, it artificially inflated Soviet military capabilities. A notorious example was the "bomber gap" that later turned out to be grossly exaggerated. Another was "Team B," a group of hawkish CIA analysts who seriously distorted Soviet military data. These scare tactics worked. Congress awarded giant defense contracts to the U.S. military-industrial complex.

And not even the fall of the Soviet Union and the demise of American defense contracts have stopped the CIA from serving the elite. Journalist Robert Dreyfuss writes:

Since the end of the Cold War, Washington has been abuzz with talk about using the CIA for economic espionage. Stripped of euphemism, economic espionage simply means that American spies would target foreign companies, such as Toyota, Nissan and Honda, and then covertly pass stolen trade secrets and technology to U.S. corporate executives. (5)If this isn't bad enough, a worse problem arises in that the CIA doesn't hand over this technology to every American auto-related company, but only the Big Three: Ford, Chrysler and General Motors.

In a 1975 interview, Ex-CIA agent Philip Agee summed up his personal observations of the agency:

American multinational corporations have built up colossal interests all over the world, and you can bet your ass that wherever you find U. S. business interests, you also find the CIA... The multinational corporations want a peaceful status quo in countries where they have investments, because that gives them undisturbed access to cheap raw materials, cheap labor and stable markets for their finished goods. The status quo suits bankers, because their money remains secure and multiplies. And, of course, the status quo suits the small ruling groups the CIA supports abroad, because all they want is to keep themselves on top of the socioeconomic pyramid and the majority of their people on the bottom. But do you realize what being on the bottom means in most parts of the world? Ignorance, poverty, often early death by starvation or disease...

Remember, the CIA is an instrument of the President; it only carries out policy. And, like everyone else, the President has to respond to forces in the society he's trying to lead, right? In America, the most powerful force is Big Business, and American Big Business has a vested interest in the Cold War. (6)

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