President Truman signs the National Security Act, merging military departments into the National Military Establishment (later Department of Defense), creating the CIA and National Security Council, and establishing the National Security Resources Board to coordinate military, industrial, and …
Harry S. TrumanU.S. CongressDepartment of DefenseCentral Intelligence AgencyNational Security Councilmilitary-industrial-complexnational-security-stateintelligence-agenciesdefense-industryinstitutional-capture
The Truman Committee reveals that Curtiss-Wright’s Lockland, Ohio plant supplied defective aircraft engines to the Army Air Force through falsified tests, forged inspection reports, and collusion with military inspectors. Despite holding more defense contracts than any company except General …
Curtiss-Wright CorporationTruman CommitteeHarry S. TrumanArmy Air Forcewar-profiteeringdefense-industrycorporate-impunitycongressional-oversightinspector-general-failure
The Justice Department indicts Anaconda Wire and Cable Company and five employees for conspiracy to defraud the United States by supplying defective wire and cable for combat use. Lend-Lease shipments to the Soviet Union were 50% defective, prompting an official Soviet protest. Despite pleading …
Anaconda Wire and Cable CompanyDepartment of JusticeTruman CommitteeFrancis Biddlewar-profiteeringdefense-industrycorporate-impunityinstitutional-capture
Congress passes the Renegotiation Act on April 28, 1942, establishing a process to recapture “excessive profits” from war contractors. While presented as a check on war profiteering, the act’s weak enforcement mechanisms and industry-friendly implementation allow most excessive …
President Franklin D. Roosevelt creates the War Production Board (WPB) to coordinate wartime production, staffing it with corporate executives as ‘dollar-a-year men.’ This establishes a precedent for corporate-government partnership where business leaders shape government policy while …
Franklin D. RooseveltDonald NelsonWar Production BoardDefense contractorsWilliam Knudsencorporate-government-fusionwar-profiteeringrevolving-doordefense-industryinstitutional-capture
Ford Motor Company breaks ground on the Willow Run bomber plant near Ypsilanti, Michigan, on April 17, 1941. The facility, the largest factory under one roof in the world at over 3.5 million square feet, is built entirely with government funds through the Defense Plant Corporation but operated by …
Ford Motor CompanyHenry FordCharles SorensenWar DepartmentDefense Plant Corporationwar-profiteeringcorporate-subsidiesdefense-industrypublic-private-partnershipsmilitary-industrial-complex
Senator Harry S. Truman establishes the Senate Special Committee to Investigate the National Defense Program (Truman Committee) after witnessing widespread waste and profiteering in war production. Over the next four years, the committee will save an estimated $10-15 billion by uncovering fraud and …
Harry S. TrumanU.S. SenateDefense contractorswar-profiteeringcongressional-oversightdefense-industryinstitutional-accountability
Corporate profits explode during WWII mobilization, with the largest 200 corporations more than doubling annual profits from $576 million (1936-39) to $1.225 billion (1940-44) - a 113% increase. Cost-plus contracting allows companies to inflate costs with lavish executive salaries while earning …
U.S. corporationsGeneral MotorsSteel industryWar Industries BoardCharles E. Wilsonwar-profiteeringcorporate-powerdefense-industryexecutive-compensationcost-plus-contracts