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Rhett Butler: War Profiteer

Written by Gary North on December 12, 2012

“Frankly, Mr. Davis, I don’t give a damn.”

These are the words that would have made Gone With the Wind far more meaningful to me.

Instead of Rhett in a Yankee jail, losing at poker to make himself too valuable for the commanding officer to execute, he would have been in a Confederate jail. After all, he was using precious cargo space to bring back trinkets to sell to civilians at high prices rather than selling guns at high prices to the War Department. I can almost hear Jeff Davis now: “You’re hurting the war effort, Butler, you scoundrel!”

I always liked Rhett. I think most Southerners liked him in 1939. But in 1863 in Atlanta, he would have been a scoundrel — a near traitor . . . unless he had something for sale that some Southern patriot, or his wife, wanted to buy. Then it would have been “let’s make a deal [you scoundrel].”

I wrote an article on General Grant’s expulsion of the Jews from his military district in 1862. In response, a subscriber posted this on a forum.

I was unaware of this event until reading this article even though I consider myself as having an above average appreciation of the military campaigns through the reading of the late Shelby Foote’s fine volumes “The Civil War; A Narrative”. What bothers me most is the unsettled question: “Are war profiteering and free markets ever moral?”

Is war profiteering moral? Not for a pacifist, certainly. But the subscriber is not talking about pacifists. He is talking about civilians who support the war.

To begin to answer this question, let us look at the question from the economic point of view. Are war losses a good idea?

To answer this, I will speak of what is euphemistically called “the Great War”: World War II.

PROFIT AND LOSS

You cannot have profits if you cannot have losses. Entrepreneurial profits come from the accurate forecasting of the future, and then taking steps to implement a plan of action consistent with this forecast. Losses come from the opposite scenario. Somebody guesses wrong, and he implements a bad plan. In both cases, customers impose their will on the respective producers.

Let us say that, during World War II, someone in Ireland, which was neutral, invented a weapon which would have utterly destroyed the capabilities of all aircraft flying over a country. The man in Ireland would have a chance to make a bundle of money. He could sell his invention to the Germans or to the Americans. He would probably have decided on the basis of which country would pay him the greatest amount of money. He had no commitment to the Allies, and he had no commitment to the Germans.

I also could use the example with a man in Latin America or Spain. The point is, the man has an invention which could give victory to one or the other country within weeks.

Let us say that you are a loyal American in 1942. Would you want to see the invention sold to the Germans? No? Well, then, would you want to see the federal government make that man incomparably wealthy by buying his invention? If you are an American, you would think it would be an excellent idea. So, the public in the United States would be taxed, and every dime would go to the foreign inventor.

Let’s say the product came with a money-back guarantee. The Americans then deploy the weapon, the Germans can no longer bomb their enemies, and within weeks, the war is over.

Would that have been a good investment? Would it have been a good idea to make that foreigner incomparably wealthy, thereby saving the lives of 300,000 Americans, plus lots of lives from the other allied nations? If you think that this would be a good idea, then you believe in war profiteering for foreigners.

But, you may say, none of this is true if the inventor is an American. In that case, it would be treason for him to sell his invention to the Germans. That is true; it would be. So, the man simply tells the United States government to pony up whatever he thinks he can extract out of the government. He would soon be a war profiteer on a scale never seen before. He is going to get incomparably wealthy at the expense of American taxpayers. In doing so, he is going to save the same amount of lives. Should the government fork over the money? What if he asks for the money tax-free? Should the government pay him the money on a tax-free basis?

One answer might be “no.” The government should not pay him a dime. The government should force him to hand over his invention. But the man does not have to turn over anything. It is his property. If he thinks that he is not getting compensated for his invention, he can tell the federal government to get lost. What then? Lots of dead American troops. Lots of dead Allies. The war goes on for another three years, or whatever.

Or, maybe the guy decides to give up his American citizenship, moves to Brazil, or any other neutral nation, and then makes his offer to the highest bidder. He is no longer American citizen. Any American is allowed to give up his citizenship. Any American who gives up his citizenship is no longer under the jurisdiction of the United States government. At that point, he can cash in on his invention. He is non-ideological. He doesn’t care whether the Germans win or the Americans win. All he cares about is getting paid for his invention. What’s wrong with that?

If the goal is to win the war, then there should be no consideration whatsoever regarding the profitability of any invention or strategy which will win the war. The government should pay the person at least as much as the war will cost, not counting the dead and wounded troops. Whatever money the government estimates it will expect to pay in order to win the war should immediately be handed over to that individual, on a money-back guarantee, for the weapon. That would save all those lives. It would cost only the money that the government would have spent anyway.

Anything wrong with this line of economic reasoning so far?

If the answer is “The man is a scoundrel,” so what? He can win the war.

How many parents would say this? “I’d rather have my enlisted son at risk of dying than see that profiteer get rich.” Not many.

TRADING WITH THE ENEMY

What if the issue of war profiteering involves helping the enemy? What if it is helping the nation to win a lot more than his costing the enemy to win?

This is what Rhett Butler was doing. He was helping ladies to buy nice things. Maybe he was running other goods. It was a matter of “high bid wins” as to what he was shipping out or bringing back. He did not care who won the war. He cared that he would come out ahead, which he did. He owned no slaves, but he sold trinkets at high prices to those who did.

What he did is basic to every war in American history. Someone finds a way to do well for himself by way of scoundrel-like actions. The little guys get caught. The big boys quietly get rich.

(for the rest of the article, click the link.)

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8 thoughts on “Rhett Butler: War Profiteer

  1. Rabelrouser says:

    Boy, what a concept, free enterprise. The only draw back would be a modern senario; the federal govt would just take the invention, throw the man in jail on trumped up charges of treason, or he would be murdered. The the govt would continue to borrow more for their war making machine to profit. Does anyone remember LBJ?
    Too bad some "scoundrel" does'nt fund the modern militia with the same means.

    • SweetOlBob says:

      Right ! There is no private or intelligent property under Obama. He would simply take the invention under the guise of safety or the ecology or make it far too expensive to manufacture because of a horde of regulations. That is unless it could be made entirely wind wind or solar power, in which case he would grant the company billions of dollars as long as they contributed heavily to him.
      Whatever he did, he would take full credit for being a hero id it worked and claim to have never heard of it if it flopped.
      (Solyndra ?)

  2. Obama and McSHAME & CONgress have traded with the enemy! Flashback

    Reality Check: Is Al-Qaeda An Enemy Or Not.
    http://www.youtube.com/watch?v=B6hGmn1zO5E

    Exclusive: Obama authorizes secret U.S. support for Syrian rebels (WHO ENDED UP KILLING AMERICANS )
    http://www.reuters.com/article/2012/08/01/us-usa-

    REPORT: The US Is Openly Sending Heavy Weapons From Libya To Syrian Rebels
    http://www.businessinsider.com/obama-admin-admits

    Flashforward

    Obama Recognizes Syrian Opposition Group
    http://abcnews.go.com/Politics/OTUS/exclusive-pre

    Syrian rebels defy US and pledge allegiance to jihadi group
    http://www.telegraph.co.uk/news/worldnews/middlee

    If only we could trade for the Canadian leaders!

    Canada tells Syrian opposition it won’t be recognized until it rejects extremism despite U.S. acceptance
    http://news.nationalpost.com/2012/12/11/canada-te

    • The vast majority of FSA rebels are not even Syrian. They also, oddly enough, have access to very sophisticated weaponry and cellphone technology supplied from outside Syria (read: US and Israel). The FSA is not a "popular uprising of the Syrian people" against Assad. It's another covert war funded and instigated by the US to topple Assad on its way to the main prize: Iran.

  3. Idylewylde says:

    As always, the dictator must live in fear of the entrepreneur. This is why the Left hates entrepreneurs and always backs Corporate Fascism … as in Stimulus, Trickle Down Government, bread-crumb entitlements.
    Yet, the dictator cannot make the entrepreneur go away.
    Dictatorships rise and fall on the entrepreneur. Even Stalinist Russia collapsed from within because of the entrepreneur. Note how our Corporate Fascist elites attack Russian Capitalism instead of trying to work with it to moderate it.
    I do not sweat Obama.
    He is a tired lesson from a forgotten era. He will run his course, then market forces will force America back into reality. Just ask the Russians.
    In the meantime, entreprenurs will continue to flourish while most of America, including the corporate fat cats and Wall Street, cannibalize their own income sources, and Bernanke greases the fire spit.
    It's a tale oft told, and too often ignored by ideological idiots and greedy corporations on the Stimulus dole, and the Devil in drag at the Fed as the plantation goes under.
    "Frankly, Bernanke, I don't give a damn."

  4. Frodo Baggins says:

    Now u find fault with fictional characters. Who's next, snuggleupwithus?

    • Frodo, fictional characters are used by their creators to make ideological and philosophical points. These works don't exist in a philosophical vacuum. You need to know that. The person who wrote Gone With the Wind had a worldview and a philosophy, and used her characters to express that worldview and philosophy. So did the producers and directors who adapted the novel to the screen. They overlaid their own biases upon it. Dr. North is not arguing with Rhett Butler. He's arguing with his creators. Anyone who sees anything on TV or in the movies should always be ready to do the same, and to teach his children to do so as well. This is called critical thinking, and it's essential to a free republic and to living one's life in an examined, meaningful way.

  5. AWKingsley says:

    Excellent article! We see this same thing in the Middle East conflicts. We keep putting up money for Foreign Aid that goes into weapons so the Middle East conflict continues on an on. Who does this actually benefit? The U.S. maintains the PetroDollar (U.S. Dollar) as the World's Reserve Currency, and the defense contractors reap huge profits from weapons that kill people. The American tax payer is out trillions of dollars to protect our unstable devalued U.S. Dollar as an unviable means of exchange and to kill people in other countries. We protect Afghanistan for commercial interests, apparently opium production and a possible pipeline through Afghanistan.

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