People's History of the United States_ 1492 to Present, A - Zinn, Howard [261]
That prediction turned out to be accurate. At the start of 1950, the total U.S. budget was about $40 billion, and the military part of it was about $12 billion. But by 1955, the military part alone was $40 billion out of a total of $62 billion. A small but courageous movement against the military buildup, led by the War Resister’s League and other groups, failed to stop it.
In 1960, the military budget was $45.8 billion—49.7 percent of the budget. That year John F. Kennedy was elected President, and he immediately moved to increase military spending. In fourteen months, the Kennedy administration added $9 billion to defense funds, according to Edgar Bottome (The Balance of Terror).
By 1962, based on a series of invented scares about Soviet military build-ups, a false “bomber gap” and a false “missile gap,” the United States had overwhelming nuclear superiority. It had the equivalent, in nuclear weapons, of 1,500 Hiroshima-size atomic bombs, far more than enough to destroy every major city in the world—the equivalent, in fact, of 10 tons of TNT for every man, woman, and child on earth. To deliver these bombs, the United States had more than 50 intercontinental ballistic missiles, 80 missiles on nuclear submarines, 90 missiles on stations overseas, 1,700 bombers capable of reaching the Soviet Union, 300 fighter-bombers on aircraft carriers, able to carry atomic weapons, and 1,000 land-based supersonic fighters able to carry atomic bombs.
The Soviet Union was obviously behind—it had between fifty and a hundred intercontinental ballistic missiles and fewer than two hundred long-range bombers. But the U.S. budget kept mounting, the hysteria kept growing, the profits of corporations getting defense contracts multiplied, and employment and wages moved ahead just enough to keep a substantial number of Americans dependent on war industries for their living.
By 1970, the U.S. military budget was $80 billion and the corporations involved in military production were making fortunes. Two-thirds of the 40 billion spent on weapons systems was going to twelve or fifteen giant industrial corporations, whose main reason for existence was to fulfill government military contracts. Senator Paul Douglass, an economist and chairman of the Joint Economic Committee of the Senate, noted that “six-sevenths of these contracts are not competitive. . . . In the alleged interest of secrecy, the government picks a company and draws up a contract in more or less secret negotiations.”
C. Wright Mills, in his book of the fifties, The Power Elite, counted the military as part of the top elite, along with politicians and corporations. These elements were more and more intertwined. A Senate report showed that the one hundred largest defense contractors, who held 67.4 percent of the military contracts, employed more than two thousand former high-ranking officers of the military.
Meanwhile, the United States, giving economic aid to certain countries, was creating a network of American corporate control over the globe, and building its political influence over the countries it aided. The Marshall Plan of 1948, which gave $16 billion in economic aid to Western European countries in four years, had an economic aim: to build up markets for American exports. George Marshall (a general, then Secretary of State) was quoted in an early 1948 State Department bulletin: “It is idle to think that a Europe left to its own efforts . . . would remain open to American business in the same way that we have known it in the past.”
The Marshall Plan also had a political motive. The Communist parties of Italy and France were strong, and the United States decided to use pressure and money to keep Communists out of the cabinets of those countries. When the Plan was beginning, Truman’s Secretary of State Dean Acheson said: “These measures of relief and reconstruction have been only in part suggested by humanitarianism. Your Congress has authorized and your Government is carrying out, a policy of relief and reconstruction