Five Ways to Stop War Profiteering

Investigate the Profiteers

Throughout history, when corporate interests are suspected of trying to make a buck off the devastation of war, courageous politicians have demanded investigations. In the early 1930s North Dakota Senator Gerald P. Nye launched Congressional hearings into war profiteering surrounding World War I. Harry Truman led hearings at the height of World War II. Today, there should again be a bipartisan call for a formal Congressional inquiry into companies getting sweetheart military contracts and others making big bucks off war.

Eliminate Cost-Plus Contracts

Officials have known cost-plus contracts—which guarantee a certain percentage of the cost is added to ensure a profit for the contractor—have potential for abuse since World War I. Today, new evidence continues to surface that Halliburton and other contractors are abusing cost-plus contracts, to the detriment of U.S. taxpayers and “reconstruction” projects. Cost-plus contracts remove any incentive for corporations to reduce costs, since the greater the cost incurred in the project, the greater the profit for the company. Profits and costs of contracts—a growing part of the military budget—should be capped.

Demand Your Right to Know

Once of the greatest obstacles to organizing and policy-making is a glaring lack of information. Many contracts in Afghanistan and Iraq have been made with restricted bidding and little congressional oversight. We must have transparency in bidding and content of contracts, as well as how the contracts are carried out.

Support Reconstruction for the People

For countries rebuilding after war, the first opportunity for “reconstruction" work should be given to local people, businesses, and institutions. That is the only path to true prosperity and self-rule. Reports out of Iraq also show that self-run “reconstruction” is cheaper and more efficient.

Spread Democracy, Not Corporate Greed

Corporations aren’t just getting rich in Iraq and elsewhere through military contracts. They’re also poised to make big profits from the wealth and resources in conquered countries. For example, the Pentagon has prodded the Iraqi Governing Council to permit 100 percent foreign ownership in most sectors of Iraq’s economy, and to allow all profits to leave the country. The U.S. has also pushed through provisions limiting taxes on corporations to 15 percent. Plunder is one of the oldest forms of profiteering. Demand an end to U.S. policies that encourage the pillaging of other countries’ wealth and resources.