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Robert Greenwald

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Meet the 0.01 Percent: War Profiteers

Posted: 10/27/11 11:38 AM ET

There's the top 1% of wealthy Americans (bankers, oil tycoons, hedge fund managers) and there's the top 0.01% of wealthy Americans: the military contractor CEOs.

If you've been following the War Costs campaign, you already know that these corporations are bad bosses, bad job creators and bad stewards of taxpayer dollars. What you may not know is that the huge amount of money these companies' CEOs make off of war and your tax dollars places them squarely at the top of the gang of corrupt superrich choking our democracy. These CEOs want you to believe the massive war budget is about security -- it's not. The lobbying they're doing to keep the war budget intact at the expense of the social safety net is purely about their greed.

In many areas, including yearly CEO salary and in dollars spent corrupting Congress, these companies are far greater offenders than even the big banks like JP Morgan Chase or Bank of America.

Egregious Military Contractor CEO pay

The top 0.01% of earners make at least $9.14 million per year, a rarefied strata of income that includes defense company CEOs and Wall Street bank chieftains alike. But a deeper dive demonstrates how defense companies outpace the big banks' knack for enriching themselves at the expense of everyone else.

Military Contractor CEO Pay in 2010

Just to put that in context, consider how these annual payoffs compare to the people we're used to thinking of as poster children for the top 1 percent:

Financial Sector CEO Pay in 2010

Considering how they stack up to financial sector heads, war industry CEOs aren't just members of the 1%; they're the super-elite among them, the one-hundredth of a percent.

Lobbying Domination

Disgusted by the overwhelming corporate influence in Congress? Look no further than the big military contractor companies, whose flagship companies spend enough on lobbying to dwarf even financial sector titans.

War Industry Lobbying Expenditures for 2010

  • Lockheed Martin: $12.7 million.
  • Northrop Grumman: $15.7 million.
  • Boeing: $17.89 million.
  • Again, just to provide some context, here are the same lobbying totals for some of the most recognized names in the financial sector.

    Financial Sector Lobbying in 2010

    The war industry gets away with blowing our money on job-killing spending because it can bend Congress to its whim. In the process, the industry is like a vacuum sucking up brain power and engineering resources that could and would establish and grow entirely new wholesome industries. It's no surprise that Americans confront a 9.1% unemployment rate and an under-employment rate flirting with 20 percent this year.

    Want to know where all the money went that could be putting people back to work or keeping U.S. manufacturing industries competitive? The war industry CEOs dumped lobbying cash on Congress and diverted all that wealth to their private bank accounts.

    Striking a blow for democracy

    The war contractors' iron grip on the wealth and politics of our country has caught the attention of our friends at Occupy Wall Street, who are targeting war profiteers in its draft list of demands with a call to bring home "all military personnel at all non-essential bases" and to end the "Military Industrial Complex's goal of perpetual war for profit."

    We're allies of the Occupy movement, which swells from the 99%'s disgust and dysfunction with our system. A democracy for and of the people that favors the 0.01% at the expense of the 99.99% of us is no democracy at all.

    We here at Brave New Foundation and the War Costs campaign have been inspired by the incredible work of the Occupy movement, so we created our latest video to help push this critical piece of their message: war for profit has to end. We're asking viewers to share our video with their local Occupy groups and organize a guerrilla screening at an Occupy protest in your city.

    The Occupy protests have a lot to teach us, and the leaderless movement is at minimum an indictment of our political system. They've stopped whispering, and we've all started shouting.

    Occupy your city and show this video to your community.

     
     
     

    Follow Robert Greenwald on Twitter: www.twitter.com/robertgreenwald

 
 
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05:30 PM on 12/02/2011
Write in Ouzzy88 2012 for change!
11:05 PM on 11/09/2011
OCCUPY CAL POLICE BRUTALITY. SHARE. THIS IS BLATANT BRUTALITY AND ABSOLUTELY THOSE COPS SHOULD BE REPRIMANDED. SHARE THIS. MAKE IT VIRAL. LET COLLEGE OCCUPATIONS GROW. http://www.youtube.com/watch?v=buovLQ9qyWQ

Occupy Cal 11/9/11
www.youtube.com
Berkeley police beating Cal students before retreating;)
09:07 PM on 10/27/2011
Actually, the Federal Acquisition Regulations (which defense contractors are required to follow), limit what taxpayers pay for CEO salaries. Additionally, a significant amount of lobbying costs are also not paid for by taxpayers, in accordance with these regulations. The government does not limit what corporate employees are paid, but it does limit what amount is paid for by the U.S. Government, and the amount paid by taxpayers is not even $1million/year for each executive.

So, while this article is eye-opening regarding the amount of money paid to individuals in corporate America, taxpayers do not need to be concerned that their tax dollars are paying for those astronomical salaries or lobbying expenses.
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Benjamin J Grimm III
I've got a head like a brick!
07:35 PM on 10/27/2011
This is why we need Wikileaks. Yeah, I said it.
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demisfine
Often correct, NEVER right.
07:30 PM on 10/27/2011
This article proves to those of us who have been suspicious for ten years about the need for these wars that we were right to be suspicious.
W's reign of incompetence was the height of greed, selfishness, entitlement and disregard for the middle class and poor of this nation.
Our government was nearly bankrupted, the middle class lost a decade, the hundreds of thousands of military families have sacrificed, and the only ones to profit were the top 1 %.
It is disgusting.
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HUFFPOST SUPER USER
AndyWright68
Freedom is inevitable!
05:05 PM on 10/27/2011
Then the answer is to abolish congress. They are the ones with the guns. They are the ones who steal our money to give to these .01%. They are the ones who point guns at us. Without a government to start wars there are no war profits.
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The Ben Bernanke
AMI (American Monetary Institute)
05:58 PM on 10/27/2011
This should be the main...
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demisfine
Often correct, NEVER right.
07:32 PM on 10/27/2011
A decade lost and the nation nearly bankrupted for the profit of a few entitled, selected families and their friends.
It is sickening.
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The Ben Bernanke
AMI (American Monetary Institute)
11:17 PM on 10/27/2011
yep, it truly is sickening.
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The Ben Bernanke
AMI (American Monetary Institute)
05:55 PM on 10/27/2011
Yes, this is a wonderful post (and not a bit surprising)...
There are real people behind our criminal "corporate people" we need to shine a light on who these people really are, it's time to name names...
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HUFFPOST SUPER USER
ScreenName05
05:44 PM on 10/27/2011
Socialism for the wealthy.
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HUFFPOST SUPER USER
David Hundley
Deep In The Heart of Taxes
05:13 PM on 10/27/2011
All I want is the same insurance for me and my family, that these politicians get, WE PAY FOR IT ANYWAY..
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HUFFPOST SUPER USER
ScreenName05
05:49 PM on 10/27/2011
The reality is that people in Congress have a choice of insurance programs much like that at a large corporation that they have to sign up for, and then gets partially paid for by the government. If they are over 65 they are on medicare, or if they are retired military tricare for life.

The real problem is not that they get something different, the real problem is the bribes they take from the insurance companies to keep all of America on a for profit health care system that can never work and drains billions out of the economy to make a few wealthy, while isolating the sickest people (the elderly) on medicare instead of using the excess spent on health insurance by everyone under 65 to support the larger health care needs of the country.
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HUFFPOST COMMUNITY MODERATOR
tacevad
American SS Card Carrying Socialist
05:07 PM on 10/27/2011
and yet we are the ones called "UnAmerican" and "Unpatriotic" for wanting to slash Defense Department spending.
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pisedoff
Not gonna take it any more
04:07 PM on 10/27/2011
and now you know the rest of the story and why the TGOP and some DEMasss are ticked at Obama for ending the troops in Iraq Seem the poor babes will lose some of their monopolistic war markets. Is this why it lasted 9 years? You Bet Yo Ass.
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HUFFPOST SUPER USER
David Hundley
Deep In The Heart of Taxes
04:04 PM on 10/27/2011
I think its Absurd that these people are ashamed to meet the masses, Where do they think they got all their money, through the blood, sweat and tears of the American Worker..MAKE EM STAY LOCKED UP IN THEIR GLASS HOUSES, IT MIGHT BE LUXURY, BUT IT IS NOT FREEDOM...
04:02 PM on 10/27/2011
Lobbying goes into whose pockets? Who is the recipient of the funds from the corporations? How come no one is publishing how many members of congress are in the 1%, 5% or 10%? Seems funny to be that so many "poor" politicians starting out (Clintons, Obama, Bush 1 & 2, Perry, etc.) became so wealthy over time without holding a "real" job. The case against going to work for the government was always that it never paid much as it was "Public Service".
05:01 PM on 10/27/2011
Which one of you dissing these "war profiteers" has a better idea?
Would it be easier to stomach if the Government owend these companies?
Would these multi billion doallr companies pay corporate taxes if it was owned by the Fed?
What about all of the new technology that comes out of R&D for these companies?

Perhaps we should ask all of these companies to leave town and set up shop in China or Russia?
Perhaps we should end of military all together and tell the world to "come and take it"
If we stop making bullets, will all the world's bad guys go plant flowers instead of land mines?
01:51 AM on 10/30/2011
Read the Constitution and stop blabbering. Our military is for our defense. Not to conjure up wars with foreigners and occupy their lands to make money for these criminals.