Pentagon Capitalism How the Cold War US Military Modeled Itself on Private Business

A pioneering study of the Cold War military-industrial complex shows how defense leaders reorganized the US armed forces in the image of commercial enterprise.

The strategic landscape of the Cold War generated political support for a permanent US military force of unprecedented scale. Faced with the problem of managing this behemoth, leaders of the defense bureaucracy looked to private industry for inspiration: since the military now resembled a huge industrial conglomerate, they reasoned, it should be run like a business. A. J. Murphy explores the profound consequences of translating military structures of command, logistics, and warfare into capitalist terms.

In the realm of budgeting and finance, defense reformers refashioned the supply process as a buy-and-sell transaction between units, requiring officers to express their need for equipment and labor in dollar terms. Bureaucrats embraced Taylorist work measurement to supervise everything from clerical filing to the production of massive weapons systems. The services even engaged management consultants to establish officer-training academies modeled on the Harvard Business School.