US behemoths’ insatiable desire has eroded the American manufacturing industry, and it is now getting tougher for US oligarchs to maintain their rentier capitalism worldwide. Such may be the case, but there is no preparation for compensating for the loss of Western industries while the US-led bloc creates more conflicts in this part of the world.
A study from Watson Institute Brown University entitled “How Big Tech and Silicon Valley are Redefining the Military-Industrial Machine” reveals the system’s workings whereby the generator race constantly evolves. The model’s core is networking to enrich many people and hopes they will either create a wonder weapon or two from irrational money pits.
Malcolm Harris’ 2023 book “Palo Alto: The fourth item on the list was “A History of California, Capitalism, and the World” which, in its detail-oriented exploration of Silicon Valley’s military-industrial complex and even all the eugenics and class warfare that arise in the citadel of capitalism in the Bay Area.
Challenges and criticism in military contracts
War Capitalism could put on a blindfold and run into a maze of horrific, absurd plans with confidence because it had class power echolocation for a guide: And to the rich, one should make a social contract, as long as the working class becomes stronger and the poor undergo weakening, the process is on the right track.
It wasn’t important that capitalists were pouring finance sugar here and monopoly profits over there and participating in the bitter international race to the bottom of the industrial standings rather than providing many jobs at home, with a course of events that was destined to have Software as the leading tech in this century. We humans will just have to adapt. The top leaders from Silicon Valley were on holy wooden chairs placed on top of this global empire but never knew that the tower’s foundation underneath was melting.
If the country couldn’t beat the world market in primary materials and heavy manufacturing, it would play to its advantage. However, in conflict, these approaches show how they work or not – as we have a reference to Ukraine, the Red Sea, and with a dozen more tastes unfortunately Iran will be drawn in, tasting if neocons have their way. Free trade agreements with India, Pakistan, and Bangladesh are noticeable, but China’s always poised behind the horizon.
Greater proportions of fiscal budget, venture capital, and private investors are contributing to large technology corporations and start-ups for development of AI systems for armed conflicts, drone technology, and other not-civilized tech tools of war. Thankfully, there is no particular evidence that these products are actually effective when used in any real life situation, and the only people who stand to enrich themselves by the dealings are a few insiders.
The document shows that the US Army and intelligence agencies contracted to innovative technology companies such as Microsoft, Amazon, and Alphabet up to $28 billion between 2018 and 2022. However, the actual value can be much higher due to the government’s ability to govern contracts in this area. Military and Intelligence also continue to increase their funding of startups: Military and Intelligence also continue to increase their funding of startups:
Geopolitical Implications
According to some researchers, particular defense tech startup pilot projects may successfully create prototypes but not in crossing this infamous “valley of death” area, a huge distance between an early prototype with small production and the Pentagon’s multi-year contracts. A traditional heavyweight methodology has been characterized by higher service prices caused by overhead costs, which mainly led to the expulsion of small firms.
This stems from the fact that it only started to change in 2015. The following year, former Defense Secretary Ash Carter created DIUx. It was headquartered in Silicon Valley and designed as a venture capital fund. Its main objective was to quickly detect and invest in startups with the most innovative products, details of which could be used for military activities.
DIUx was set up by DOD, which established a startup accelerator aimed at funding companies in AI, robotics, data analysis, cybersecurity, and biotechnology. Like-minded DIUx followed on Amazon’s Lab126, Microsoft’s Silicon Valley campus, and Apple’s headquarters to take up residence among these technology titans.
Carter, who had spent quite a long time at Stanford University prior to his taking up the office of the Defense Secretary, was amazed by the original and vigorous entrepreneurial environment of the San Francisco Bay area. In the year 2018, DIUx changed to Defense Innovation Unit (DIU) which showed that it was not the experimental option. The DOD Investment Umbrella is a procurement entity that from June 2016 to September 2022, has taken over bilateral contracts worth a total of $1.2 billion to more than 320 companies.
Retired Air Force Lieutenant General Jack Shanahan said about AI-powered advances:
‘Whether it is about autonomous weapons developing their own narratives or not, I’m not seriously concerned about it now, but rather with people dying due to poor capabilities leading to malfunction or faulty sensing systems.’
However, $100B+ VC money for defense tech startups between 2021 and 2023 top the historic arrivals of the biggest VC firms who were generally reluctant to invest in such ventures in the past, but this picture begun to change radically over the last few years.
Indeed that the revolving door is moving at an unvarying pace to swell the finances. However, there seems to be one of the concurrent large-scale matters nowadays: the destruction of the idea that China will supersede the US and dominate the entire “AI arms race”. The future is at stake.
While the report argues this is vastly overblown, government officials who help propagate it and steer money towards research of AI-powered weaponry, surveillance, and logistics systems are rewarded upon leaving office.
The Chinese defense industrial base is running like a machine meant to be used in times of war; on the other hand, the American defense industrial base is peacetime-designed equipment. Consequently, the US Defense Industrial Base (DIB) is more complex than its capacity to respond to the urgent needs of the military, which include greater flexibility, surge capability, and production and warfighting demands. Unless there are immediate changes, the United States may have a problem in upholding the threat and making WAR. The warfare capacity of the country can be reduced.
This story was sourced from nakedcapitalism.