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Yes, some of us still remember that the now-famous (or do I mean infamous?) phrase "the military-industrial complex" actually came from the farewell address of former World War II general and then-President Dwight D. Eisenhower on January 17, 1961. But how often do any of us remember the all-too-painfully appropriate context in which he offered it to the American people -- as a warning about a future that today is so much ours, as the budget of the Department of Defense (so it's still called despite the many disastrous and anything but "defensive" wars the U.S. military has fought in this century) heads for the trillion-dollar mark? Here, then, to introduce military expert and TomDispatch regular Michael Klare's eye-opening account of where the MIC (the shorthand version of that phrase) is heading in the age of the drone and artificial intelligence, is the larger context for Eisenhower's first use of the term:
"Until the latest of our world conflicts, the United States had no armaments industry. American makers of plowshares could, with time and as required, make swords as well. But now we can no longer risk emergency improvisation of national defense; we have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United States corporations.
"This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence -- economic, political, even spiritual -- is felt in every city, every state house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources, and livelihood are all involved; so is the very structure of our society.
"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together. Akin to, and largely responsible for the sweeping changes in our industrial-military posture, has been the technological revolution during recent decades."
And more than 60 years later, with Eisenhower's grimly visionary statement in mind, let Klare suggest just how eerily on target he was. If you don't believe me, note that tech giant Anduril is now setting up its first factory in the Midwest -- Columbus, Ohio, to be exact -- at the cost of an initial billion dollars to produce "autonomous systems and weapons," as artificial intelligence prepares to go to war. Tom
A New Military-Industrial Complex Arises
The Secret War Within the Pentagon
Last April, in a move generating scant media attention, the Air Force announced that it had chosen two little-known drone manufacturers -- Anduril Industries of Costa Mesa, California, and General Atomics of San Diego -- to build prototype versions of its proposed Collaborative Combat Aircraft (CCA), a future unmanned plane intended to accompany piloted aircraft on high-risk combat missions. The lack of coverage was surprising, given that the Air Force expects to acquire at least 1,000 CCAs over the coming decade at around $30 million each, making this one of the Pentagon's costliest new projects. But consider that the least of what the media failed to note. In winning the CCA contract, Anduril and General Atomics beat out three of the country's largest and most powerful defense contractors -- Boeing, Lockheed Martin, and Northrop Grumman -- posing a severe threat to the continued dominance of the existing military-industrial complex, or MIC.
For decades, a handful of giant firms like those three have garnered the lion's share of Pentagon arms contracts, producing the same planes, ships, and missiles year after year while generating huge profits for their owners. But an assortment of new firms, born in Silicon Valley or incorporating its disruptive ethos, have begun to challenge the older ones for access to lucrative Pentagon awards. In the process, something groundbreaking, though barely covered in the mainstream media, is underway: a new MIC is being born, one that potentially will have very different goals and profit-takers than the existing one. How the inevitable battles between the old and the new MICs play out can't be foreseen, but count on one thing: they are sure to generate significant political turbulence in the years to come.
The very notion of a "military-industrial complex" linking giant defense contractors to powerful figures in Congress and the military was introduced on January 17, 1961, by President Dwight D. Eisenhower in his farewell address to Congress and the American people. In that Cold War moment, in response to powerful foreign threats, he noted that "we have been compelled to create a permanent armaments industry of vast proportions." Nevertheless, he added, using the phrase for the first time, "we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist."
Ever since, debate over the MIC's accumulating power has roiled American politics. A number of politicians and prominent public figures have portrayed U.S. entry into a catastrophic series of foreign wars -- in Vietnam, Cambodia, Laos, Iraq, Afghanistan, and elsewhere -- as a consequence of that complex's undue influence on policymaking. No such claims and complaints, however, have ever succeeded in loosening the MIC's iron grip on Pentagon arms procurement. This year's record defense budget of approximately $850 billion includes $143.2 billion for research and development and another $167.5 billion for the procurement of weaponry. That $311 billion, most of which will be funneled to those giant defense firms, exceeds the total amount spent on defense by every other country on Earth.
Over time, the competition for billion-dollar Pentagon contracts has led to a winnowing of the MIC ecosystem, resulting in the dominance of a few major industrial behemoths. In 2024, just five companies -- Lockheed Martin (with $64.7 billion in defense revenues), RTX (formerly Raytheon, with $40.6 billion), Northrop Grumman ($35.2 billion), General Dynamics ($33.7 billion), and Boeing ($32.7 billion) -- claimed the vast bulk of Pentagon contracts. (Anduril and General Atomics didn't even appear on a list of the top 100 contract recipients.)
Typically, these companies are the lead, or "prime," contractors for major weapons systems that the Pentagon keeps buying year after year. Lockheed Martin, for example, is the prime contractor for the Air Force's top-priority F-35 stealth fighter (a plane that has often proved distinctly disappointing in operation); Northrop Grumman is building the B-21 stealth bomber; Boeing produces the F-15EX combat jet; and General Dynamics makes the Navy's Los Angeles-class attack submarines. "Big-ticket" items like these are usually purchased in substantial numbers over many years, ensuring steady profits for their producers. When the initial buys of such systems seem to be nearing completion, their producers usually generate new or upgraded versions of the same weapons, while employing their powerful lobbying arms in Washington to convince Congress to fund the new designs.
Over the years, non-governmental organizations like the National Priorities Project and the Friends Committee on National Legislation have heroically tried to persuade lawmakers to resist the MIC's lobbying efforts and reduce military spending, but without noticeable success. Now, however, a new force -- Silicon Valley startup culture -- has entered the fray, and the military-industrial complex equation is suddenly changing dramatically.
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