The issues raised in this post are complicated. The praise of applying “business practices” in all areas of our public life is almost universal. But the Emperor – or the CEO in this case – has no clothes. As an organizational construct for the military, business practices are utterly inappropriate and incompetent. I hope that message comes through in the paragraphs that follow.
I ask readers to understand the limitations of this forum. This is not about capitalism itself. It is about the mixing and matching of methods and motives, and what may result from oversimplification or failure to consider unintended consequences.
I ask readers to understand the limitations of this forum. This is not about capitalism itself. It is about the mixing and matching of methods and motives, and what may result from oversimplification or failure to consider unintended consequences.
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The Virtues and Limitations of Capitalism
Many who have dedicated their lives to achieving profit believe we can equate American values with capitalism. They are so enamored with the material prosperity capitalism has brought to our nation that they think capitalism can accomplish anything. They are wrong. Capitalism is not an American value. It is an American economic system.
I support capitalism as an exceptionally effective economic system. It does what it is intended to do: create profits and prosperity. Capitalism is a logical economic system for a free people. As our government is based upon individual rights and liberty, deriving its power from the consent of the people, so our economy is based upon economic freedom, deriving its profits from the free economic decisions of the people. Our economic system presents a free market in which persons and corporations are unrestrained by oppressive government interference, free to pursue whatever economic goals they choose, and to achieve as much prosperity as they can.
Capitalism, properly regulated, is a wonderful means for creating material prosperity. But being an economic system, it does not always work as well in other areas of public life. Capitalistic principles are not capable of creating virtue, nor enlightenment, nor justice. Capitalism should never have been expected to create virtue or enlightenment or justice.
In their misplaced application of economic principles to other areas of our national life, some zealous disciples of capitalism have created problems. They have cried long and loud for us to run everything from your neighborhood elementary school to the public library to the Marine Corps like a business. In their enthusiasm to create “success” by forcing economic principles and measures into every aspect of our society, they have not only failed to create success - they may have damaged our public institutions, injured our national character, and diminished our security.
In their misplaced application of economic principles to other areas of our national life, some zealous disciples of capitalism have created problems. They have cried long and loud for us to run everything from your neighborhood elementary school to the public library to the Marine Corps like a business. In their enthusiasm to create “success” by forcing economic principles and measures into every aspect of our society, they have not only failed to create success - they may have damaged our public institutions, injured our national character, and diminished our security.
Business models of operations, which work well for creating profits, are utterly inappropriate for non-economic purposes. You cannot use business principles to create a beautiful work of art, or to build an educated populace, or to protect the natural world for our great-grandchildren, or to make our nation secure.
Business Rules and the Armed Forces
Attempting to run our American military according to business rules has been a big mistake. After a couple of decades of the forcing the military to adopt an economic orientation, we find we have a military force full of providers rather than patriots.
I do not impugn the patriotism of the members of our military services. That remains strong, due in part to the patriotic upbringing of many who choose to join, and in part to alternative paradigms such as the Army and Navy Core Values. I only state that the patriotism of our armed forces in the second decade of the 21st century remains in spite of the attempt to run our military by business principles – not because of it.
What has the imposition of business principles given us? Instead of force and fleet commanders we emphasize the roles of force providers and employers, supporting and supported commands. The chain of command has been weakened by the military version of market forces which emphasize collaboration and elaborate connectivity. In place of combat expertise we build programs for effectiveness enhancement. Instead of a coordinated attack, we plan for integrated action based on a common communication suite. Instead of victory we emphasize power projection. Instead of a field of honor we have a battle space.
Business aficionados tell us we can build a better military by applying the economic principle of competition to military training. They are mistaken. Economists tell us that applying free-market principles will improve the efficiency of the military hierarchy. They are wrong.
In a capitalistic economic system, businesses try to overcome the opposition, not to help it. Business is essentially competitive. Military training and operations, on the other hand, are essentially cooperative. When military forces train, the intent is for all to gain expertise and ability. When military forces operate, the intent is for all friendly forces to survive. Military forces work together as one effective team to “compete” with the enemy.
In a capitalistic economic system, businesses try to overcome the opposition, not to help it. Business is essentially competitive. Military training and operations, on the other hand, are essentially cooperative. When military forces train, the intent is for all to gain expertise and ability. When military forces operate, the intent is for all friendly forces to survive. Military forces work together as one effective team to “compete” with the enemy.
That is not to say there is no element of competition in military training and operations. Competition in training makes military elements more proficient and therefore more likely to be victorious when the opponent is an actual enemy. The difference is that in military training, the competition is practice, formative, designed to make all participants more survivable. In business the competition is real, summative, and deadly.
No matter how much we wish it were so, buzzwords and bottom lines will never replace training and expertise, and business practices will never produce a fighting force as effective as traditional military methods. The U.S. military is not Wall Street.
Profits and losses are relative. In warfare, losses are measured in lives, not dollars. Given the stakes, should we be experimenting on a large scale by manipulating the self-image and perception of purpose within our U.S. military? Should we put economists in charge of our national defense?
When the military truly is run like a business, then the lives of service members will have been reduced to the dehumanizing status of a cost of doing business. Alarmingly, the term “human capital” is already in widespread use in both military and business circles.
And here is another totally separate reason for concern, which I will not elaborate due to the need to focus on one issue at a time. When the military truly is run like a business, then the military-industrial complex that President Eisenhower warned us about will be an irresistible force in all matters of government and economy. Consider the implications of that.
Few seem to have noticed, but the essential motivations of military and business are drastically different. That is not to say their skills are not transferable. However, we should not expect an organization based on honor and virtue to be effective if forced to operate utilizing the practices of an organization based on wealth accumulation. This is a huge logical disconnect for those who advocate for a ‘business-model military.’ Or for those who advocate for use of a business model of operations in other protector organizations such as police, firefighters, and Coast Guard.
Profit, whether in the form of dollars or of higher assessment outcomes, is not and should not be the goal of military service. But if we impose business practices, and the prime motivation in the world of business is profit, then what will be the motivation for the military member? If the motivation for the soldier or the sailor becomes self-interest, as in the business world, then by what stretch of the imagination can we expect them to put their lives on the line? There is no profit in self-sacrifice. There is no price to be placed upon honor or love of country. In our American military, business practices should not apply.
Gryphem
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For those of you who doubt my commitment to a free-market economy, or who would like to read more about what capitalism is and is not, I recommend this blog post:
The article is thorough and clear. The author clearly explains why capitalism is a great economic system for a free people, and also makes this unequivocal statement: “Capitalism is not a socio-political system.” I applaud the uncommon good sense.
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