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Military-Industrial Complex

FIRST COINED by outgoing President Dwight D. Eisenhower in his farewell address to the nation, the military-industrial complex is a tight-knit group of interchangeable parts and people, for example, retired military officers moving into defense companies, defense company leaders moving into government. Eisenhower warned the country to be wary of the military-industrial complex. Indeed, the opportunity for fraud and white-collar crime, may not be matched by another segment of society. The collusion between the military and industry has grown significantly since Eisenhower's 1950s.

Before World War II, between 1922 and 1939, annual military budgets averaged 1 percent of the Gross National Product, only $744 million. Purchasing was by public advertisement for fixed quantities. Bids were sealed, and awards went to low bidders. Government business was not ...

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