Rhett Butler: War Profiteer

Written by Gary North on The Tea Party Economist  

“Frankly, Mr. Davis, I don’t give a damn.”

These are the words that would have made Gone With the Wind far more meaningful to me.

Instead of Rhett in a Yankee jail, losing at poker to make himself too valuable for the commanding officer to execute, he would have been in a Confederate jail. After all, he was using precious cargo space to bring back trinkets to sell to civilians at high prices rather than selling guns at high prices to the War Department. I can almost hear Jeff Davis now: “You’re hurting the war effort, Butler, you scoundrel!”

I always liked Rhett. I think most Southerners liked him in 1939. But in 1863 in Atlanta, he would have been a scoundrel — a near traitor . . . unless he had something for sale that some Southern patriot, or his wife, wanted to buy. Then it would have been “let’s make a deal [you scoundrel].”

I wrote an article on General Grant’s expulsion of the Jews from his military district in 1862. In response, a subscriber posted this on a forum.

I was unaware of this event until reading this article even though I consider myself as having an above average appreciation of the military campaigns through the reading of the late Shelby Foote’s fine volumes “The Civil War; A Narrative”. What bothers me most is the unsettled question: “Are war profiteering and free markets ever moral?”

Is war profiteering moral? Not for a pacifist, certainly. But the subscriber is not talking about pacifists. He is talking about civilians who support the war.

War Profiteering Is Killing Us All

War Profiteering Is Killing Us All (Photo credit: Wikipedia)

To begin to answer this question, let us look at the question from the economic point of view. Are war losses a good idea?

To answer this, I will speak of what is euphemistically called “the Great War”: World War II.

PROFIT AND LOSS

You cannot have profits if you cannot have losses. Entrepreneurial profits come from the accurate forecasting of the future, and then taking steps to implement a plan of action consistent with this forecast. Losses come from the opposite scenario. Somebody guesses wrong, and he implements a bad plan. In both cases, customers impose their will on the respective producers.

Let us say that, during World War II, someone in Ireland, which was neutral, invented a weapon which would have utterly destroyed the capabilities of all aircraft flying over a country. The man in Ireland would have a chance to make a bundle of money. He could sell his invention to the Germans or to the Americans. He would probably have decided on the basis of which country would pay him the greatest amount of money. He had no commitment to the Allies, and he had no commitment to the Germans.

I also could use the example with a man in Latin America or Spain. The point is, the man has an invention which could give victory to one or the other country within weeks.

Let us say that you are a loyal American in 1942. Would you want to see the invention sold to the Germans? No? Well, then, would you want to see the federal government make that man incomparably wealthy by buying his invention? If you are an American, you would think it would be an excellent idea. So, the public in the United States would be taxed, and every dime would go to the foreign inventor.

Let’s say the product came with a money-back guarantee. The Americans then deploy the weapon, the Germans can no longer bomb their enemies, and within weeks, the war is over.

Would that have been a good investment? Would it have been a good idea to make that foreigner incomparably wealthy, thereby saving the lives of 300,000 Americans, plus lots of lives from the other allied nations? If you think that this would be a good idea, then you believe in war profiteering for foreigners.

But, you may say, none of this is true if the inventor is an American. In that case, it would be treason for him to sell his invention to the Germans. That is true; it would be. So, the man simply tells the United States government to pony up whatever he thinks he can extract out of the government. He would soon be a war profiteer on a scale never seen before. He is going to get incomparably wealthy at the expense of American taxpayers. In doing so, he is going to save the same amount of lives. Should the government fork over the money? What if he asks for the money tax-free? Should the government pay him the money on a tax-free basis?

One answer might be “no.” The government should not pay him a dime. The government should force him to hand over his invention. But the man does not have to turn over anything. It is his property. If he thinks that he is not getting compensated for his invention, he can tell the federal government to get lost. What then? Lots of dead American troops. Lots of dead Allies. The war goes on for another three years, or whatever.

Or, maybe the guy decides to give up his American citizenship, moves to Brazil, or any other neutral nation, and then makes his offer to the highest bidder. He is no longer American citizen. Any American is allowed to give up his citizenship. Any American who gives up his citizenship is no longer under the jurisdiction of the United States government. At that point, he can cash in on his invention. He is non-ideological. He doesn’t care whether the Germans win or the Americans win. All he cares about is getting paid for his invention. What’s wrong with that?

If the goal is to win the war, then there should be no consideration whatsoever regarding the profitability of any invention or strategy which will win the war. The government should pay the person at least as much as the war will cost, not counting the dead and wounded troops. Whatever money the government estimates it will expect to pay in order to win the war should immediately be handed over to that individual, on a money-back guarantee, for the weapon. That would save all those lives. It would cost only the money that the government would have spent anyway.

Anything wrong with this line of economic reasoning so far?

If the answer is “The man is a scoundrel,” so what? He can win the war.

How many parents would say this? “I’d rather have my enlisted son at risk of dying than see that profiteer get rich.” Not many.

TRADING WITH THE ENEMY

What if the issue of war profiteering involves helping the enemy? What if it is helping the nation to win a lot more than his costing the enemy to win?

This is what Rhett Butler was doing. He was helping ladies to buy nice things. Maybe he was running other goods. It was a matter of “high bid wins” as to what he was shipping out or bringing back. He did not care who won the war. He cared that he would come out ahead, which he did. He owned no slaves, but he sold trinkets at high prices to those who did.

What he did is basic to every war in American history. Someone finds a way to do well for himself by way of scoundrel-like actions. The little guys get caught. The big boys quietly get rich.

(for the rest of the article, click the link.)

Continue Reading on www.garynorth.com

About Land & Livestock Interntional, Inc.

Land and Livestock International, Inc. is a leading agribusiness management firm providing a complete line of services to the range livestock industry. We believe that private property is the foundation of America. Private property and free markets go hand in hand—without property there is no freedom. We also believe that free markets, not government intervention, hold the key to natural resource conservation and environmental preservation. No government bureaucrat can (or will) understand and treat the land with as much respect as its owner. The bureaucrat simply does not have the same motives as does the owner of a capital interest in the property. Our specialty is the working livestock ranch simply because there are so many very good reasons for owning such a property. We provide educational, management and consulting services with a focus on ecologically and financially sustainable land management that will enhance natural processes (water and mineral cycles, energy flow and community dynamics) while enhancing profits and steadily building wealth.
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1 Response to Rhett Butler: War Profiteer

  1. Gunny G says:

    Reblogged this on AMERICAN BLOGGER: GUNNY.G ~ WEBLOG & EMAIL and commented:
    I always liked Rhett. I think most Southerners liked him in 1939. But in 1863 in Atlanta, he would have been a scoundrel — a near traitor . . . unless he had something for sale that some Southern patriot, or his wife, wanted to buy. Then it would have been “let’s make a deal [you scoundrel].”

    I wrote an article on General Grant’s expulsion of the Jews from his military district in 1862. In response, a subscriber posted this on a forum.

    I was unaware of this event until reading this article even though I consider myself as having an above average appreciation of the military campaigns through the reading of the late Shelby Foote’s fine volumes “The Civil War; A Narrative”. What bothers me most is the unsettled question: “Are war profiteering and free markets ever moral?”

    Is war profiteering moral? Not for a pacifist, certainly. But the subscriber is not talking about pacifists. He is talking about civilians who support the war.
    War Profiteering Is Killing Us All

    War Profiteering Is Killing Us All (Photo credit: Wikipedia)

    To begin to answer this question, let us look at the question from …..

    Like

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