War & Peace

Executive Excess: Close Loopholes that Permit War Profiteering

By nearly any measure, the party David H. Brooks threw recently for his daughter’s bat mitzvah was absurdly over the top. The New York businessman flew in musical mega stars Stephen Tyler and Joe Perry (from Aerosmith), 50 Cent, Tom Petty, Kenny G. and a gaggle of other celebrity acts, many by private jet, to perform for the girl in the Rainbow Room in Rockefeller Center. That the money for the bash, estimated by the New York Daily News at $10 million, came from war profits, made this excess even more obscene. Brooks, CEO of bulletproof vest maker DHB Industries, has seen his fortunes soar since the 9-11 terrorist attacks. Last year, he earned $70 million, most of it from stock options. That represented an increase of 13,349 percent over his pre-9-11 compensation, according to Executive Excess, co-published by the Institute for Policy Studies and United for a Fair Economy. Brooks’ flaunting of his war wealth is exceptionally tasteless, given that the equipment which boosted his fortunes appears not to work very well. In May 2005, the Marines recalled more than 5,000 DHB armored vests after questions were raised about their effectiveness in stopping 9 mm bullets. Last month, the Marines and Army announced a recall of an additional 18,000 DHB vests. Brooks is also under investigation by the Securities and Exchange Commission for suspected financial wrongdoing and faces a number of investor class action lawsuits for fraud and insider trading. For any CEO who has spent the war in the comfort of his executive suite to flaunt his war wealth sends the wrong message to those on the frontlines. As the body count continues to mount, news like this must be especially galling to U.S. troops. Most likely, they will never earn as much in their lifetimes as Brooks earned in one year. Brooks is just one example of the many executives who are cashing in on the boost in military spending since 9-11. Defense contractor CEOs received raises on average of 200 percent between 2001 and 2004, compared to only 7 percent for average large company CEOs. What can be done about war profiteering? It’s important to remember that this is public money, in the form of defense contracts, which is driving these CEOs’ personal profits. Taxpayers should have every right to insist that strings be attached to that money, including requirements that executive pay be restrained to reasonable levels during times of war. In theory, U.S. law already imposes a ceiling on executive pay for defense contractors at about $430,000 per year. But loopholes in the law and technical difficulties with enforcement has made it meaningless in practice. The principle behind that law should be strengthened and loopholes closed. Times of war call for a spirit of shared sacrifice, not greed. While those on the frontlines are paying the highest price for this war, American taxpayers are also making a tremendous sacrifice. In exchange, we should be able to feel confident that the hundreds of billions spent on the war are going to support a stable and prosperous Iraq. Instead we see massive sums lining the pockets of defense CEOs — and, in this case, their favorite entertainers.

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The U.S. Invasion of Iraq: Not the Fault of Israel and Its Supporters

As the official rationales for the U.S. invasion of Iraq—that Iraq possessed “weapons of mass destruction” which threatened the national security of the United States and that the Iraqi government had operational ties to al-Qaida—are now widely acknowledged to have been fabricated, and the back-up rationalization—of bringing freedom and democracy to Iraq—is also losing credibility, increasing attention is being given as to why the U.S. government, with broad bipartisan support, made such a fateful decision.

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Israel & Palestine: A Way Out?

In a 2002 Le Monde Diplomatique article titled “Constructing Catastrophe,” Israeli journalist Amon Kapeliouk challenged one of the central myths about the ongoing conflict between Israel and the Palestinians. To wit: that Palestinian President Yasir Arafat was offered a great deal at the Camp David talks in July 2000, but turned it down and launched Intifada II.

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A Forensic Anatomy of the Strategy for ‘Victory’

The MO–method of operation or, more formally, modus operandi–is clear from even the most cursory look at the externals. Put Commander-in-Chief George Bush in front of an audience that is sure to be friendly (like military cadets), test the themes, wait for the inevitable applause, and depart right after the speech. Progressively move on to fora less hand-picked but sure to contain a number of individuals sympathetic to the White House line. Above all, sound resolute (like Churchill), stand tall, and be assured that there’s no such thing as too much repetition.

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Dinner with Condi and the Fate of Gaza

There is a moment in Jeffery Goldberg’s New Yorker profile of Brent Scowcroft, George Bush Senior’s former National Security Adviser, when the current administration’s combination of arrogance and cluelessness crystallize. Over dinner, Secretary of State Condoleeza Rice tells Scowcroft that the good news from the Middle East is that Israeli Prime Minister Ariel Sharon is pulling out of Gaza , the first step toward resolving the issue of a Palestinian state.

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El-Baradei and the IAEAs Nobel Peace Prize a Mixed Blessing

My reaction to the awarding this past weekend of the 2005 Nobel Peace Prize to the International Atomic Energy Agency and its director Mohammed El-Baradei was similar to my reaction to the awarding of the 2002 prize to former President Jimmy Carter: while they have pursued a number of policies contrary to the spirit of the Nobel Peace Prize, they have also done much to make the world a safer place.

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So Why DID Support for War Go South?

“To say that we are closer to victory today is to believe, in the face of the evidence, the optimists who have been wrong in the past. To suggest we are on the edge of defeat is to yield to unreasonable pessimism. To say that we are mired in stalemate seems the only realistic, yet unsatisfactory, conclusion. On the off chance that military and political analysts are right, in the next few months we must test the enemy’s intentions, in case this is indeed his last big gasp …”

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Deconstructing the Libya Option for Syria

The Bush administration continues to talk about applying the “Libya option” to Syria. In itself, this would be an excellent idea. The problem is the White House took the wrong lessons from Libya’s decision to renounce weapons of mass destruction and rejoin the international community. The Libya model may yet provide a path through the Syrian imbroglio but only if applied correctly.

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Torture Degrades Us All

In recent times, it has become fashionable to regurgitate old arguments in favor of torture, without fully thinking through the human implications of making such statements. Not only lawyers for the U.S. government, but academics from Harvard Law School and Deakin Law School in my own country of Australia have argued for torture.

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