The Military-Industrial Complex and the Militarization of Society

Published by the Mercatus Center at George Mason University.

The military-industrial complex (MIC) refers to the nexus of relationships between public officials, scientific researchers, and private defense contractors. Viewing the MIC through the lens of Robert Higgs’ theory of the “ratchet effect” helps us understand the origins, development, and consequences of the MIC. As Higgs explains, during crises officials have significantly greater leeway to expand the size and scope of government. The extent and nature of this expansion is shaped by the prevailing ideology. Once government has expanded during a crisis, it rarely shrinks back to the pre-crisis growth path, as the expansion reshapes both political incentives and prevailing ideology. The MIC was born in the crisis of World War II, and it has created a set of perverse incentives, vested interests, and long-run ideological interests that perpetuate a system of militarism and cronyism. This contributes to a broader militarization of society, including the militarization of domestic security and law enforcement. These developments are difficult to reverse, as they have created a set of vested interests with material and ideological reasons to perpetuate the current system. Challenging the prevailing ideology of militarism, which legitimates the MIC, is crucial to challenging the harm caused by the MIC.

Find this chapter in The Legacy of Robert Higgs, available on Amazon.