Whether you are a profiteer in your own country or abroad, there are many ways you can make profits from war. You can either sell weapons, medical services, or even tax excessive profits.
Active vs passive war profiteers
Whether you’re interested in the military, finance, or commerce, you’re bound to have heard of or even sworn off the latest and greatest gadget to hit the market. One such gadget is the ol’ fashioned calculator. As such, it’s no wonder that you’ll be hard pressed to find a single person on a given day who hasn’t been exposed to at least one. But, there’s a plethora of calculators to choose from. A well-informed consumer will be able to pick the most suitable model in a matter of minutes. The best part is that most of them are free.
It’s also not uncommon to find a large number of unscrupulous individuals who are in the business of buying and selling your personal data in a highly competitive industry. To top this off, some firms have to pay an excess profits tax. This can amount to a tidy sum of money for many of these hapless victims.
Conflict profiteers instigate wars
Taking advantage of wars and conflict is a global industry. Some of the top profiteers include companies involved in the security, weapons, mining, and reconstruction industries. They often use the country in which they are located as a way to expand their business.
The US has long instigated conflicts in many different countries. The country is the world’s largest arms dealer. The United States has also been known to engage in covert mission to overthrow the Guatemalan government in 1953.
A number of economic hypotheses have been put forward to explain why private actors have a motive to take part in a conflict. These are based on group motivation, group dynamics, and resources.
The relationship between resources and conflict has been researched extensively by a wide range of scholars. One of the most comprehensive studies on the topic is by Philippe Le Billon. His book provides a valuable resource for students of civil wars and international conflict.
Arms sales
Despite its relative obscurity, the United Kingdom may have a monopoly on the UK arms trade, but it still isn’t immune to some of the hilariness that is found in the arms industry, such as in the form of weapons of mass destruction. Moreover, a slew of reports have surfaced claiming that Britain-made weapons are currently being used in the bombing of Yemen. Nevertheless, we can’t deny that the UK Government isn’t doing all that much to combat terrorism. The likes of jihadists may be on the march in Yemen, but this doesn’t bode well for the security of British citizens. Hence, it’s time to make a stand in defense of our nation’s interests. To do so, the government needs to improve the transparency of its procurement process, preferably by introducing a more streamlined and transparent system that doesn’t rely on black market and dubious sources.
Excessive profits tax
During wartime, many governments have levied excess profits taxes. These taxes are designed to recapture the excess profits earned during the war, and pay for the cost of the war. However, many economists and social reformers oppose these taxes during peacetime, saying that they discourage innovation and work.
One of the problems with the modern excess profits tax is that it has been viewed by some as an attempt to disincentivize companies from investing. While this is true, it is important to remember that a lot of corporate profits are actually excess profits. These are profits that have landed in a company’s lap due to market power or luck.
Another issue with excess profits taxes is that they do little to address the root cause of the problem. For example, they will not lower prices of gas or oil. They will also not decrease the inflation rate.
