Noam Chomsky - Turning the Tide U.S. intervention in

The Race to Destruction
Classics in Politics: Turning the Tide Noam Chomsky
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interests and the capitalist state. On the one hand, business wants a
powerful state to regulate disorderly markets, provide services and
subsidies to business, enhance and protect access to foreign markets
and resources, and so on. On the other hand, business does not want a
powerful competitor, in particular, one that might respond to different
interests, popular interests, and conduct policies with a redistributive
effect, with regard to income or power. It has never been an easy
problem to solve. It is difficult to imagine a system better designed for
the benefit of the privileged than the military system.
The system has had many successes over the years, and still does,
despite the increasing economic problems it produces in an era where
relative US power has diminished. As I write, Business Week reports
that “key statistical indicators have been flashing mixed signals” about
the future of the economy, “but economists are counting on one constant
to keep the economy growing [and profits flowing]: defense spending.”
The chief economist for US studies at Wharton Econometrics observes
that “Defense spending increases probably provided the greatest
momentum to growth in recent years.” Furthermore, “since a growing
share of defense spending is going for hardware, it is supporting the
economy by giving the import-battered manufacturing sector a shot in
the arm.” This is one area where US industry has the field pretty much
to itself—so far; the Japanese have their eye on this huge market. Faith
in this perpetual public subsidy allows corporations “to fill nondefense
orders first,” relying on “defense spending as a cushion for those times
when other business gets weak.” 89 Again, it would be hard to design a
system more conducive to business needs. Much the same has been
true at crucial moments throughout the postwar period.
It is commonly observed that these methods are less satisfactory than
the Japanese system of state-coordinated production geared to the
commercial market, but there are many qualifications necessary, in part