Even within the most avowed Leftist anti-war activist there exists a belief that the Second World War was fully justified in stopping Hitler's Nazis. They claim it was a just war for freedom and to halt the Holocaust. The position of the World Socialist Movement was that we considered it little different from any other war for capitalist interests and as such deserving our condemnation and opposition. Over the years ample evidence has been produced vindicating the stance taken by the WSM although not widely disseminatd by the media or academia. In recent years America has been engaged in a number of unpopular military conflicts, Vietnam and Iraq being just two, and those wars are compared to America’s archetypal “just war,” World War II, in which Good Ol' Uncle Sam supposedly went to war for no other reason than to fight dictatorship and injustice.
The reality was that for the United States the war in Europe and then its own entry provided the capitalist class with magnificent booty. It was not because Roosevelt's New Deal that the Great Depression ended but by the literal blood sacrifice of workers. The usual manner of correcting economic slumps is through wide-spread unemployment that lowers wages, causes bankruptcies of the less competitive companies, and facilitates the take over of devalued plant and equipment by larger corporations. This reorganization of capitalist production on the basis of cheaper labor and cheaper materials all around, allows the surviving, enlarged and more "efficient" capitalists to re-new production at rates of profit, productivity and growth even greater than before the downward dive in the "business cycle." Prior to the "war effort," this process was underway but had not gotten the economy going again. However, the riches plundered in times of war---the take-over and re-organization of conquered nations' entire material wealth, equipment, cheap labor, factories, and infrastructure---are vastly more profitable than is the process of domestic bankruptcies and economic rebuilding at home.
As FDR said, the model he followed had already been proven effective in Communist Russia, Fascist Italy, and Nazi Germany under those “command economies. Throughout the 1930's and prior to US entry into World War Two, American corporations largely increased production in Nazi Germany. Coca-Cola, GM, Ford, Standard Oil of NJ/Exxon, Du Pont, Union Carbide, Westinghouse, General Electric, Goodrich, Stinger, Eastman Kodak, IBM, and ITT, and several other Capitalist enterprises expanded their operations in Germany becoming extremely profitable thanks to the economic boom caused by Hitler's rearmament program. Other US corporations invested hundreds of millions of dollars in fascist Italy. American law firms, investment companies, and banks were also actively and profitably involved in America's investment expansion in fascist countries, among them the banks J. P. Morgan and Dillon, Read and Co., as well as the renowned Wall Street law firm Sullivan & Cromwell.
Coca-Cola's German subsidiary, for example, increased its sales from 243,000 cases in 1934 to 4.5 million cases by 1939. This success had a lot to do with the fact that, as the Hitler-admiring and -imitating national manager Max Keith explained, the caffeinated soft drink revealed itself to be a functional alternative to beer as a refreshment for Germany's workers, who were being driven 'to work harder [and] faster.' In Hitler's Third Reich, where labour unions and working-class political parties had been banned, the workers 'were little more than serfs forbidden not only to strike, but to change jobs,' and their wages 'were deliberately set quite low.' “ Hence the higher profits in general for all American capitalists in Germany. IBM's hugely profitable German subsidiary supplied the Nazi's with the new technology necessary to automate production as well as to identify and track Jews. When in 1939 war in Europe came it provided further new opportunities for the American capitalist class to profit through production and sale of armaments and military equipment for the warring nations. Programs FDR set up to finance the purchase of American weapons and ammunition by the cash-strapped British provided London with virtually unlimited credits. In fact, American workers paid off much of the resulting accumulated national debt by means of direct and indirect regressive taxes such as the ”Victory Tax.” Again, the Capitalists pulled in huge “publicly financed” profits, while low-income workers paid the price through reduction of their personal consumption (remember “Spam”), and reduction of their war-taxed real income.
America's ruling class was divided with respect to the handling of foreign affairs. In the 1930s, the US military had no plans, and did not prepare plans, to fight a war against Nazi Germany. On the other hand, they did have plans war against Great Britain, Canada, Mexico – and Japan. As late the 1930s, the US military still had plans for war against Britain and an invasion of the Canadian Dominion, the latter including plans for the bombing of cities and the use of poison gas.
The owners and top managers of many American corporations – including Ford, General Motors, IBM, ITT, and Rockefeller’s Standard Oil of New Jersey, now known as Exxon – liked Hitler a lot; one of them – William Knudsen of General Motors – even glorified the German Führer as “the miracle of the 20th century.” The reason: in preparation for war, the Führer had been arming Germany to the teeth, and the numerous German branch plants of US corporations had profited handsomely from that country’s “armament boom” by producing trucks, tanks and planes in sites such as GM’s Opel factory in Rüsselsheim and Ford’s big plant in Cologne, the Ford-Werke; and the likes of Exxon and Texaco had been making plenty of money by supplying the fuel Hitler’s panzers would need to roll all the way to Warsaw in 1939, to Paris in 1940, and (almost) to Moscow in 1941. No wonder the managers and owners of these corporations helped to celebrate Germany’s victories against Poland and France at a big party in the Waldorf-Astoria Hotel in New York on June 26, 1940!
America's “captains of industry” like Henry Ford also appreciated the way Hitler repressed the German unions, outlawing the Communist and Social Democratic Parties, and imprisoning their members. Dachau, Germany's first concentration camp, was set up in 1933 to cage political prisoners. The American right-wing wished they could mete out the same kind of treatment to America’s own union leaders and “reds,” still numerous and influencial in the 1930s and early 1940s.
American companies eagerly took advantage of Hitler's dismemberment of workers organisations' and cut labour costs drastically. In Nazi Germany, real wages indeed declined rapidly, while profits increased correspondingly, but there were no labour problems worth mentioning, for any attempt to organize a strike immediately triggered an armed response by the Gestapo, resulting in arrests and dismissals. The Ford-Werke, for example, reduced labour costs from fifteen per cent of business volume in 1933 to only eleven per cent in 1938. GM’s Opel factory in Rüsselsheim near Mainz fared even better. Its share of the German automobile market grew from 35 per cent in 1933 to more than 50 per cent in 1935, and the GM subsidiary, which had lost money in the early 1930s, became extremely profitable thanks to the economic boom caused by Hitler’s rearmament program. the chairman of GM, Alfred P. Sloan, publicly justified doing business in Hitler’s Germany by pointing to the highly profitable nature of GM’s operations under the Third Reich. IBM's German subsidiary, Dehomag, provided the Nazis with the punch-card machine — forerunner of the computer — required to automate production in the country, and in doing so IBM-Germany made plenty of money. In 1933, the year Hitler came to power, Dehomag made a profit of one million dollars, and during the early Hitler years the German branch plant paid IBM in the US some 4.5 million dollars in dividends. By 1938, still in "full Depression", annual earnings were about 2.3 million ReichMarks, a 16 per cent return on net assets. In 1939 Dehomag’s profits increased spectacularly again to about four million RM. Texaco profited greatly from sales to Nazi Germany, and not surprisingly its chairman, Torkild Rieber, became yet another powerful American entrepreneur who admired Hitler. A member of the German secret service reported that he was “absolutely pro-German” and “a sincere admirer of the Führer.” Rieber also became a personal friend of Göring. Texaco helped the Nazis stockpile fuel. In addition, as the war in Europe got underway, large quantities of diesel fuel, lubricating oil, and other petroleum products were shipped to Germany not only by Texaco but also by Standard Oil, mostly via Spanish ports. (The German Navy, incidentally, was provided with fuel by the Texas oilman William Rhodes Davis.) In the 1930s Standard Oil had helped IG Farben develop synthetic fuel as an alternative to regular oil, of which Germany had to import every single drop.
The last thing those men wanted, was for Roosevelt to involve the US in the war on the side of Germany’s enemies, they were “isolationists” (or “non-interventionists”) and so, in the summer of 1940, was the majority of the American public: a Gallup Poll, taken in September 1940, showed that 88 percent of Americans wanted to stay out of the war that was raging in Europe. Not surprisingly, then, there was no sign whatsoever that Roosevelt might want to restrict trade with Germany, let alone embark on an anti-Hitler crusade. In fact, during the presidential election campaign in the fall 1940, he solemnly promised that “[our] boys are not going to be sent into any foreign wars.”
That Hitler has crushed France and other democratic countries, was of no concern to the US corporate types who did business with Hitler, in fact, they felt that Europe’s future belonged to fascism, especially Germany’s variety of fascism, Nazism, rather than to democracy. The chairman of General Motors, Alfred P. Sloan, declared at that time that it was a good thing that in Europe the democracies were giving way “to an alternative [i.e. fascist] system with strong, intelligent, and aggressive leaders who made the people work longer and harder and who had the instinct of gangsters – all of them good qualities”.
While many big corporations were engaged in profitable business with Nazi Germany, others happened to be making plenty of profit by doing business with Great Britain. Britain was desperately in need of all sorts of equipment to continue its struggle against Nazi Germany, and needed to purchase much of it in the US, but was unable to make the cash payments required by America’s existing “Cash-and-Carry” legislation. However, Roosevelt made it possible for US corporations to take advantage of this enormous “window of opportunity” when, on March 11, 1941, he introduced his famous Lend-Lease program, providing Britain with virtually unlimited credit to purchase trucks, planes, and other martial hardware in the US. The Lend-Lease exports to Britain were to generate windfall profits, not only on account of the huge volume of business involved but also because these exports featured inflated prices and fraudulent practices such as double billing.
A segment of Corporate America thus began to sympathize with Great Britain. Some started to favour a US entry into the war on the side of the British; they became known as the “interventionists.” Of course, many if not most big American corporations made money through business with both Nazi Germany and Britain and, as the Roosevelt administration itself was henceforth preparing for possible war, multiplying military expenditures and ordering all sorts of equipment, they also started to make more and more money by supplying America’s own armed forces with all sorts of martial material.
But one thing that all the capitalists in the United States could agree on, regardless of where their sympathies and interests lay and it was this: the war in Europe was wonderful for business. They also agreed that the longer this war lasted, the better it would be for all of them. Corporate America neither wanted Hitler to lose this war nor to win it. With the exception of the most fervent pro-British interventionists, they further agreed that there was no pressing need for the US to become actively involved in this war, and certainly not to go to war against Germany. Most hoped that the war in Europe would drag on as long as possible, so that the big corporations could continue to profit from supplying equipment to the Germans, the British and to America herself. Henry Ford thus “expressed the hope that neither the Allies nor the Axis would win [the war],” and suggested that the United States should supply both sides with “the tools to keep on fighting until they both collapse.” Ford practised what he preached, and arranged for his factories in the US, in Britain, in Germany, and in occupied France to crank out equipment for all belligerents.The war may have been hell for most people, but for American capitalists such as Henry Ford it was heaven. Ford-France, for example — not a flourishing firm before the war — became very profitable after 1940 thanks to its unconditional collaboration with the Germans; in 1941 it registered earnings of 58 million francs. Ford’s subsidiary in France used its profits in 1941 to build a tank factory in Oran, Algeria; this plant allegedly provided Rommel’s Africa Corps with the hardware needed to advance all the way to El Alamein.
It cannot be denied that on account of Lend-Lease exports to Britain, relations between America and Germany were definitely deteriorating, and a series of incidents between German submarines and US Navy destroyers escorting freighters bound for Britain lead to a crisis has become known as the “undeclared naval war.” But even that episode did not lead to active American involvement in the war in Europe. America was profiting handsomely from the status quo, and was simply not interested in a crusade against Nazi Germany. Although the Japanese attack on Pearl Harbor on December 7, 1941 wasn't such a big surprise, a few days later, on December 11, Hitler declared war on the United States and that was completely unexpected. Germany had nothing to do with the attack in Hawaii and had not even been aware of the Japanese plans, so FDR did not consider asking Congress to declare war on Nazi Germany at the same time as Japan. Why declare war on America? Thwarted in the Eastern Front Hitler anticipated that a German declaration of war on the American enemy of his Japanese friends, even though not required under the terms of the Tripartite Treaty, (under the terms of the Tripartite Treaty Japan, Germany, and Italy undertook to assist each other when one of the three contracting powers was attacked by another country, but not when one of them attacked another country) would induce Tokyo to reciprocate with a declaration of war on the Soviet enemy of Germany. Japan had already previously invaded the Soviet Union and been repulsed but the bulk of its army were stationed in northern China. Hitler wanted to draw the Russians into a two-front war. The Japanese, however, proved less accommodating to Hitlers grand plans. The US did not voluntarily go to war against Germany, but were forced into that war because of Hitler’s own actions. Humanitarian considerations played no role whatsoever in the decision which led to America’s participation in World War II against Germany.
To be continued
Excellent collection of facts into a single, readable summary.
ReplyDeleteLooking forward to 'part 2'.