Smoke rises as Israeli artillery units and howitzers stationed in the military zone launch attacks near the Gaza border in Nahal Oz, Israel on December 10, 2023. (Photo: Mostafa Alkharouf/Anadolu via Getty Images)
“As global resistance to war and apartheid grows, it is important that the public know exactly who is making this violence possible.”
As of Wednesday, a U.S.-based Quaker group’s online database listed over two dozen companies profiting from the bloodshed in the Gaza Strip, where Israeli forces have spent the last 10 weeks waging what experts call a “genocidal” war that sent defense stocks soaring.
Backed by $3.8 billion in annual military aid from the United States, Israel declared war on October 7 in retaliation for a Hamas-led attack that killed over 1,100 people. Since then, Israeli forces have killed over 20,000 Palestinians in Gaza—sparking massive protests demanding a cease-fire around the world, including many led by Jewish people.
“War and attacks on civilians will never bring safety or peace to Israelis or Palestinians.”
The growing death toll, displacement, destruction of civilian infrastructure, and difficulties in delivering humanitarian aid to the besieged enclave have also increased scrutiny of a $14.3 billion package for the war that the Biden administration requested from Congress as well as criticism of the U.S. weapon-makers and billionaire donors who are arming and enabling the Israel Defense Forces (IDF).
“The scale of destruction and war crimes in Gaza would not be possible without massive weapon transfers from the U.S.,” said Noam Perry of the American Friends Service Committee (AFSC), the group behind the tool, in a statement Wednesday. “As global resistance to war and apartheid grows, it is important that the public know exactly who is making this violence possible.”
As the AFSC webpage details:
Shortly after October 7, the U.S. government started transferring to Israel massive amounts of weapons. Among these weapons, Israel received more than 15,000 bombs and 50,000 artillery shells within just the first month-and-a-half. These transfers have been deliberately shrouded in secrecy to avoid public scrutiny and prevent Congress from exercising any meaningful oversight.
Some of these weapons were purchased using U.S. taxpayers’ money through the Foreign Military Sales program; some were direct commercial sales purchased through Israel’s own budget; and some were replenished U.S. military stockpiles in Israel, which the Israeli military may also use. A list of known U.S. arms transfers is maintained by the Forum on the Arms Trade.
The webpage notes that the list is based on reporting, social media, and other open sources, and “focuses on weapons used by Israel because all Palestinian militant groups are already sanctioned and receive no support from Western governments or corporations.”
For example, Boeing, the world’s fifth-largest weapon manufacturer, makes F-15 fighter jets and Apache AH-64 attack helicopters used by the Israeli forces, as well as “multiple types of unguided small diameter bombs (SDBs) and Joint Direct Attack Munition (JDAM) kits” that have been used “extensively” during the war, including in a bombing of Gaza’s Jabalia refugee camp.
After decades of Israeli occupation forces using Caterpillar’s armored D9 bulldozers to “demolish Palestinian homes and civilian infrastructure in the occupied West Bank and to enforce the blockade of the Gaza Strip,” the machines “have been crucial in the Israeli military’s ground invasion” of the enclave, according to AFSC.
Israeli forces are invading the Nour Shams refugee camp in Tulkarem, bringing a bulldozer to destroy infrastructure belonging to the refugees there. This is on the same day that Israeli forces bulldozed and murdered displaced people and their tents in Kamal Adwan hospital, Gaza. pic.twitter.com/CH3gdoe1Zd
While both of those war profiteers are based in the United States, the list isn’t limited to U.S. firms, also calling out the world’s seventh-largest weapon manufacturer, the U.K.’s BAE Systems, and Israel’s largest weapon manufacturer, Elbit Systems, “one of the primary suppliers of weapons and surveillance systems to the Israeli military.”
Other companies on the list include weapons giants such as General Dynamics, General Electric, L3Harris Technologies, Leonardo, Lockheed Martin, Northrop Grumman, and RTX—formerly Raytheon—as well as vehicle companies AM General, Ford, Oshkosh, Toyota, and drone manufacturers AeroVironment, Skydio, and XTEND.
The list also targets U.S.-based Colt’s Manufacturing Company, which makes firearms including the M16, and Emtan Karmiel, an Israeli firm that “delivered some 12,000 rifles” to the country’s forces within a week of October 7. It also includes Israel Aerospace Industries, a state-owned manufacturer that “makes multiple weapons systems specifically for the Israeli military.”
Israeli journalist says Jews who want to live in Israel have no choice but to take up arms
There is no choice for a Jew who wants to live in the land of Israel, except to hold the Tanakh (Hebrew scriptures) in one hand, and in the other hand, hold an M16 rifle. pic.twitter.com/XlU19KS3Lp
Other Israeli firms listed include Plasan, which makes the SandCat light armored vehicle, and MDT Armor, which is owned by the Israeli company Shladot and makes the David Urban Light Armored Vehicle used by the military for patrols and reconnaissance.
The other foreign firms on the list are ThyssenKrupp, the German company that built four warships for Israel, and Nordic Ammunition Company, which makes the M141 Bunker Defeat Munition, a shoulder-fired “bunker-buster” rocket.
“As a Quaker organization with a long history of work in Palestine and Israel, including in Gaza, we support a full arms embargo to both Israeli and Palestinian militant groups,” Perry stressed Wednesday. “War and attacks on civilians will never bring safety or peace to Israelis or Palestinians. We need a permanent cease-fire and to work toward a just and lasting peace in the region.”
Zionist president Joe Biden. 27 July 2021 image by Official White House Photo by Adam Schultz. Original public domain image from Flickr
“As the Biden administration attempts to deny the death toll of Israel’s campaign of mass murder in Gaza and sell genocide as a stimulus for the U.S. economy, these are the death merchants profiting from the war machine.”
With more than 7,300 Palestinians killed so far in Israel’s three-week bombardment of Gaza, a series of reports this week have exposed how U.S. weapon-makers and billionaire donors are enabling what legal scholars say could amount to genocide.
After Israel declared war in response to Hamas killing over 1,400 Israelis and taking around 200 hostages, the stocks of major American and European war profiteers soared. A Thursday report from Eyes on the Ties—the news site of LittleSis and Public Accountability Initiative—targets five U.S. firms with a record of providing weaponry to Israel.
The outlet stressed that while announcing a supplemental funding request that includes $14.3 billion for Israel, U.S. President Joe Biden last week “invoked ‘patriotic American workers’ who are ‘building the arsenal of democracy and serving the cause of freedom,’ but it’s the defense company CEOs who rake in tens of millions a year, and Wall Street shareholders, who are the real beneficiaries of warmongering.”
As the Biden administration attempts to deny the death toll of Israel's campaign of mass murder in Gaza and sell genocide as a stimulus for the US economy, these are the death merchants profiting from the war machine.
The five targeted industry giants collectively recorded $196.5 billion in military-related revenue last year, Eyes on the Ties reported. They are Boeing ($30.8 billion), General Dynamics ($30.4 billion), Lockheed Martin ($63.3 billion), Northrop Grumman ($32.4 billion), and RTX, formerly Raytheon ($39.6 billion).
“The top shareholders in these five defense companies largely consist of big asset managers, or big banks with asset management wings, that include BlackRock, Vanguard, State Street, Fidelity, Capital Group, Wellington, JPMorgan Chase, Morgan Stanley, Newport Trust Company, Longview Asset Management, Massachusetts Financial Services Company, Geode Capital, and Bank of America,” the news outlet noted.
Eyes on the Ties also highlighted how chief executives are handsomely compensated—and the CEOs’ ties to Big Pharma, the fossil fuel industry, Wall Street, and foreign policy think tanks such as the Council on Foreign Relations and Center for Strategic and International Studies.
According to the report:
Boeing CEO David Calhoun took in over $64 million in total compensation from 2020-22 and as of February held 193,247 shares;
General Dynamics CEO Phebe N. Novakovic took in over $64 million in total compensation from 202-22 and as of March held 1,616,279 shares;
Lockheed Martin CEO Jim Taiclet took in over $66 million in total compensation from 2020-22 and as of February held 56,054 shares;
Northrop Grumman CEO Kathy J. Warden took in over $61 million in total compensation from 2020-22 and as of March held 161,231 shares; and
RTX CEO Gregory J. Hayes took in over $63 million in total compensation from 2020-22 and as of February held 801,339 shares.
Other reporting this week has taken aim at those CEOs for their suggestions that Israel’s assault on Gaza is good for business.
During Lockheed Martin’s latest earnings call, Taiclet correctly predicted Biden’s request last week, saying that “there continues to be the option… for supplemental requests related to support Ukraine, Israel, and potentially Taiwan.”
In addition to the request for Israel—which already gets nearly $4 billion in annual U.S. military aid—Biden asked for $4 billion to counter Chinese influence in the Indo-Pacific region and $61.4 billion more for Ukraine, which is battling a Russian invasion.
“We are all witnessing significant geopolitical tensions across the globe, including the ongoing war in Ukraine and the horrific attacks in Israel,” Warden said during Northrop Grumman’s Thursday earnings call, according toVICE. “As we saw last week, the [Biden] administration continues to make supplemental requests for urgent needs, including those in Ukraine and Israel, to include investments in weapons systems and defense industrial base readiness.”
“The Israel situation obviously is a terrible one, frankly, and one that’s just evolving as we speak,” said Jason Aiken, chief financial officer and executive vice president at General Dynamics, on Wednesday. “But I think if you look at the incremental demand potential coming out of that, the biggest one to highlight and that really sticks out is probably on the artillery side.”
He continued: “Obviously that’s been a big pressure point up to now with Ukraine, one that we’ve been doing everything we can to support our Army customer. We’ve gone from 14,000 rounds per month to 20,000 very quickly. We’re working ahead of schedule to accelerate that production capacity up to 85,000, even as high as 100,000 rounds per month, and I think the Israel situation is only going to put upward pressure on that demand.”
Last week, roughly 100 activists gathered outside of General Dynamics’ weapons plant in Pittsfield, Massachusetts, to protest the Israeli war, holding signs with slogans like, “Genocide: Brought To You By General Dynamics.”
Both The Lever and VICE also pointed out that during RTX’s Tuesday call, Hayes started by “acknowledging the tragic situation playing out in Israel” before turning to “an update on our end markets.”
If Congress approves Biden’s request for Israel, VICE explained, “some of the money would be used to restock Israel’s Iron Dome rocket defense system, which RTX manufactured.” Hayes said: “I think really across the entire Raytheon portfolio, you’re going to see a benefit of this restocking. On top of what we think is going to be an increase in [U.S. Department of Defense] top line.”
It’s not just defense executives enabling Israel’s mass slaughter of civilians in Gaza. As Eyes on the Ties reported, “Lobbying groups including the American Israel Public Affairs Committee (AIPAC) and Democratic Majority for Israel have been active in Washington, calling on lawmakers to send money and weapons to Israel.”
The report names some billionaire donors to the lobbying groups, including New England Patriots and the Kraft Group CEO Robert Kraft, private equity investor Marc Rowan, venture capitalist Gary Lauder, hedge fund managers Daniel Loeb and Paul Singer, and Home Depot co-founder Bernard Marcus, who is also the founding president of the Israel Democracy Institute.
U.S. Rep. Summer Lee (D-Pa.) said Wednesday that Americans “know that funneling billions more dollars into arms dealers’ pockets won’t keep our children safe from weapons of war at home or across the world. It won’t keep our loved ones safe from toxins in our air and drinking water. They know that lining the pockets of weapons manufacturers won’t help families struggling to afford housing, medicine, or grocery costs. They know defense contractors won’t safeguard Medicare and Social Security or shield our communities against the climate crisis.”
Unlike the CEOs of firms like Lockheed Martin and RTX, “moms who can’t afford childcare, young folks who can’t pay off their debt, veterans who can’t keep up with housing costs, and children who go to school hungry don’t have million-dollar lobbying budgets,” added Lee, one of the few members of Congress pushing for a cease-fire in Gaza. “So it’s up to us to stand up for their needs.”
What can we do about our oligarchy in the United States? President Biden’s blueprint for ones in Russia is a good place to start.
Republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0) licence. Note by dizzy: There’s a photo of Jeff Bezo’s superyacht at the original article. He’s got a new one now of course requiring an historic bridge to be dismantled in Rotterdam.
12/3/22 ed: I’ve emphasized one paragraph in red typeface. That part is particularly important showing that we do not live in democracy. 13/3/22 The West is imposing it’s model of oligarchs on Russia by imposing sanctions. Western oligarchs control and dictate to Western governments but that’s not the case in Russia.
Tonight I say to the Russian oligarchs and corrupt leaders who have bilked billions of dollars off this violent regime: no more.
The U.S. Department of Justice is assembling a dedicated task force to go after the crimes of Russian oligarchs.
We are joining with our European allies to find and seize your yachts, your luxury apartments, your private jets. We are coming for your ill-begotten gains.
With these words, the president unintentionally laid out a blueprint for responding to the American oligarchs, superpredators who dwarf their Russian counterpoints in wealth and political power.
America’s oligarchs, like their Russian counterparts, have bilked billions—no, make that trillions—from their own regime.
Oligarchs in a Violent Regime
About that “violent regime” business: It’s possible to condemn the violence perpetrated by Russia’s government while at the same time recognizing and condemning of our own. Our direct attacks on Iraq and Afghanistan, among other countries, have been matched by the proxy violence we have funded in nations like Palestine and Syria. Our sanctions have taken countless lives around the world, a form of bloodshed we pretend isn’t warfare.
America’s oligarchs, like their Russian counterparts, have bilked billions—no, make that trillions—from their own regime. Some of their bilking comes directly from its violence, in the form of “defense” contracts to entities like Halliburton, Lockheed Martin, and the Carlyle Group.
A 2014 Princeton political science study showed that government actions nearly always conform to the wishes of wealthy and powerful US elites. “Our central finding was this: Economic elites and interest groups can shape U.S. government policy — but Americans who are less well off have essentially no influence over what their government does,” wrote co-authors Martin Gilens and Benjamin Page.
America’s oligarchical influence extends from healthcare and fossil fuels to the industry of war itself. American companies account for more than half of all arms sales worldwide. The Center for Responsive Politics reports that “in the past two decades, (the arms industry’s) extensive network of lobbyists and donors have directed $285 million in campaign contributions and $2.5 billion in lobbying spending to influence defense policy.”
Arms manufacturers (more commonly known by the Orwellian appellation, “defense industry”) shrewdly concentrate on hiring ex-government officials to advance their agenda and pump up their “ill-begotten gains.” This ensures that their interests are represented by people who know the officials they’re lobbying. Even more importantly, it puts those officials on notice that there is a lucrative future in store for them if they play along. Arms oligarchs have hired more than 200 lobbyists who, in the report’s words, “have worked in the same government that regulates and decides funding for the industry.”
Arms manufacturers played a dominant role under Trump, but are also well-represented in the Biden Administration:
While Biden has touted strict ethics rules that attempt to thwart the influence of lobbyists on the administration, several of his earliest appointees, including Secretary of Defense Lloyd Austin and Secretary of State Antony Blinken consulted for a private equity firmthat emphasized its “access, network and expertise” in the defense industry. Austin also had a seat on the United Technologies and Raytheon board, earning more than $250,000 from the now merged companies.
“Ill-Begotten Gains”
It’s not just the arms industry, of course. Other oligarchs have bilked the people of the United States in more creative ways. Jeff Bezos built his Amazon empire off his ability to sell products online without charging sales tax. This government-granted loophole made him an oligarch, a position he has used to further cement his power and influence. He has purchased the most influential paper in the nation’s capital—an oligarch’s move if there ever was one—while constantly extending his monopolistic power into new markets.
Despite the fact that he already possessed great wealth, Elon Musk has received billions in subsidies and contracts for his automobile and space ventures. Bill Gates parlayed a government contract and some aggressive patent strategies into his own oligarchical status. Insurance executives have bilked billions from the violence of our privatized healthcare system, which takes an estimated 45,000 lives per year.
Money, of course, is only part of an oligarch’s wealth. President Biden also mentioned the property that belongs to Russian oligarchs: “your yachts, your luxury apartments, your private jets. We are coming for your ill-begotten gains.” (He meant “ill-gotten,” but I suppose you could call such malapropisms part of Biden’s charm.)
If a “supertax” were levied against America’s oligarchs by the federal government, it would produce as much as $755 billion in revenue.
Russians own an estimated 7-10 percent of the world’s superyachts, leaving plenty for their American counterparts. Luxury apartments? Check out “New York Condo Sells for Close to $190 Million; Hedge-Fund Billionaire Doubles His Money.” Private jets? Jeffrey Immelt, job outsourcer and financial predator at GE, used to taketwo jetswhen he traveled so that he’d have a spare—and charged it back to GE’s shareholders.
Little Oligarchs, Big Oligarchs
We’re told that the Russians whose yachts have been seized include Alisher Usmanov, whose net worth is $20 billion, and Alexei Mordashov, whose wealth is described as “nearly” $30 billion. Compare that with Elon Musk, who’s worth nearly $300 billion, or Jeff Bezos at $202 billion. These guys are pikers.
Globally, in the US-led world financial order, billionaires have gained $5 trillion in wealth since the pandemic began. Think of our economic leadership as a “global endowment for oligarchy.” Oxfam reports that the ten richest men in the world (yes, they’re all men) own more wealth than the bottom 3.1 billion people (“six times more, in fact”). Oxfam also notes that “if the 10 richest men”—nine of whom live in the US—”lost 99.999% of their combined wealth, they would still be richer than 99% of the world.”
Now that’s oligarchy.
Making a Killing
No industry has taken more advantage of government-granted patent monopolies than Big Pharma. Even when its oligarchs misled the country into an opioid epidemic—one of the largest mass-casualty events in American history—they are able to escape criminal culpability for their actions.
Then came Covid-19. As Forbes reported in January, US billionaires held an estimated $3.5 trillion before the pandemic struck, a figure that reached nearly $5.3 trillion two years later. That’s $1.8 trillion in gains, divided among only twenty oligarchs. Musk led the pack, with Bezos in second place. The billionaires’ list is a cavalcade of monopolists and speculators whose wealth has been fueled by their government’s benign view of their predatory business practices.
Once the pandemic hit, Big Pharma’s oligarchs were able to parlay their political power into exclusive patent rights for Covid-19 vaccines. Moderna made $17.7 billion from its vaccine in 2021 and anticipates making $22 billion this year, from a formula developed with $2.5 billion in funding commitments from the US government. The money from these government-granted profits could vaccinate the entire world, but they’ve been used to enrich shareholders instead. That’s oligarchy.
Restoring the Balance
What can Americans do about their oligarchy? President Biden’s blueprint is a good place to start. A “dedicated task force to go after the crimes of American oligarchs” is an excellent place to start. It could address questions such as:
1. Why have nine American billionaires acquired more than $755 billion during the Covid pandemic, while so many other people struggled?
2. What role did government and central bank policy play in this enrichment?
3. What unethical or illegal actions, if any, were undertaken in amassing this wealth?
4. What effect will these levels of economic inequality have on social justice, political power, social mobility, and the rights of consumers and workers?
5. Is there any reason why this money should not be taxed at 99 or 100 percent?
Item #4 would not be unprecedented. It would revive a proposal from President Franklin D. Roosevelt for a “100 percent war supertax” on extremely high incomes and would echo the 94 percent top tax rate passed during World War II. (The top marginal tax rate stayed above 90 percent for the next two decades.)
We certainly face a World War-level emergency. Oxfam observes that “a 99% windfall tax on the COVID-19 wealth gains of the 10 richest men could pay for enough vaccines to vaccinate the entire world and fill financing gaps in climate measures, universal health and social protection, and efforts to address gender-based violence in over 80 countries, while still leaving these men $8bn better off than they were before the pandemic.”
I don’t hate these oligarchs. I see them.
If a “supertax” were levied against America’s oligarchs by the federal government, it would produce as much as $755 billion in revenue. That’s enough to pay for the original, ten-year “Build Back Better” proposal—twice.
To See, and to Act
It’s striking that the current debate about American democracy ignores its biggest antagonist: the oligarchs who have undermined the political process and drained the nation of its wealth. Restraining the oligarchs would help build true democracy. It would be good politics, too.
“We know from polling that (anti-oligarchical) policies and rhetoric like these are wildly popular,” writes Eleanor Eagan of the Revolving Door Project. “In our deeply divided country, anger at elite impunity and a desire to see it end are among the rare uniting forces that we have left.”
Not that we can expect an anti-oligarchical agenda from this government any time soon. Politicians know that America’s oligarchs, unlike Russia’s, have the ability to crush their careers at any time. But the rest of us are free to speak out and demand an end to oligarchical rule anywhere in the world. Our condemnation of other country’s oligarchs will ring hollow until we do.
Someone once asked me, “Why do you hate billionaires?” The answer is, I don’t. I’ve met a few, and they were always sociable enough (unless you worked for them). I don’t hate these oligarchs. I see them. As we build the anti-oligarchical movement here in the US, Noah Liebman’s handy browser add-on (for Firefox only) helps everyone see them. It replaces the word “billionaire” with “oligarch” on every web page, producing headlines like “Bloomberg’s Oligarch Index,” “Forbes’ Oligarchs 2021,” “Inside the Financial Holdings of Oligarch Betsy DeVos” … you get the idea.
Another headline now reads, “Oligarch investor Bill Ackman says Russia’s attack on Ukraine means World War III has ‘likely already started.'” Maybe it has, or maybe it will start soon. The best way to prevent it is by eliminating all oligarchies, foreign or domestic, and replacing them with genuine democracy.
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
Richard (RJ) Eskow is a freelance writer. Much of his work can be found on eskow.substack.com. His weekly program, The Zero Hour, can be found on cable television, radio, Spotify, and podcast media. He is a senior advisor with Social Security Works.
