Patriots for Profits: An Investigation into the Crimes and Mismanagement of American Manufacturing Corporations during the First World War Era

Abstract

America’s military-industrial complex suffered from widespread profiteering that severely hindered its efficiency and performance during the nation’s involvement in World War I. Of all American industries that suffered the most from corruption and theft, aircraft production suffered the most. This thesis explores the extent of the damage caused by profiteering by individuals and companies on the American aeronautic industry along with case studies exploring the effect of profiteering on lumber and copper production. This research argues that profiteering led to the widespread inefficiencies, reduced quality, and shortages experienced by the American military-industrial complex in the First World War. With over one billion dollars spent on building a modern air service between 1917 and 1918, unadjusted for inflation, the Americans failed to produce more than one type of operational combat plane and never produced a pursuit plane. The Aircraft Production Board and War Department only issued contracts for the mass production of a single airplane motor, the Liberty Motor, which proved too large and powerful to be used in any small pursuit fighter planes forcing them to be utilized in the large and unpopular DH-4 type. The favoritism of the Liberty Motor along with certain manufacturing companies had its origin not in ignorance exclusively, but in corrupt profiteering.