Facebook Instagram Twitter YouTube

As Germany Increases Its Military Budget, Weapons Companies’ Stocks Rise by 85%

Imperialist powers are using Russia’s brutal aggression against Ukraine as part of a process of rearmament. The world’s large arms manufacturers are cheering around the world.

Facebook Twitter Share
Several tanks in a row, from NATO to Ukraine.

The war in Ukraine is proving to be a lucrative business for the world’s largest defense companies. The growing militarization of the Western powers in response to brutal Russian aggression is boosting the profits of the sectors of capital dedicated to the manufacture of the means of destruction.

This Sunday, the German government announced the creation of a “special fund” that will increase the country’s military budget by €100 billion ($112 billion). The fund will strengthen the Bundeswehr, the armed forces of one of the most important imperialist powers in Europe and the world. Germany announced on Saturday that it will also send weapons and other supplies directly to Ukraine.

The decision reinforces tendencies toward militarization. Such tendencies are characteristic of an epoch of capitalist decadence and have been the means by which the great imperialist powers have resolved tensions throughout the 20th century. But they are also enormously profitable for big capital.

This Monday, shares of German weapons manufacturers rose upwards of 85 percent. The shares of German arms company Rheinmetall alone increased by around 40 percent, reaching record highs. Germany’s announcement also benefits other German defense companies such as Heckler & Koch, Krauss-Maffei Wegmann, and Diehl.

The same can be said for the giant weapons manufacturing companies in the United States. For months, U.S. defense companies Raytheon and Lockheed Martin have been telling their investors that escalating conflict between Ukraine and Russia will be good for business. Raytheon’s share prices have risen over 10 percent since the beginning of Russia’s invasion. Its stocks rose over 4.6 percent on Monday alone. Washington is duly playing its part, passing measures to send weapons to Ukraine and bolster the sales of U.S. defense companies. Across the board, stocks for weapons companies continue to rise with each new escalation in the conflict. 

Germany, the United States, and the rest of the imperialist powers grouped in NATO are using the Russian invasion demagogically, beating the war drums and fueling the profits of arms manufacturers in the process. They are the same powers that for decades have launched invasions and military interventions in their periphery — such as those in Libya and Afghanistan — to impose “order” according to their interests. War is good for business, and it is the working class and oppressed across the world who pay the price. 

Originally published in Spanish on February 28, 2022 on La Izquierda Diario.

Facebook Twitter Share

La Izquierda Diario Argentina

Our Argentinian sister site, part of the international network of La Izquierda Diario

Europe

United Kingdom: Is a Summer of Discontent on the Horizon?

Workers in the UK are bearing the brunt of the government’s response to rising inflation and slow economic growth. But they’re fighting back, with many talking about a “summer of discontent”.

Alejandra Ríos

June 22, 2022

French Election Results Point to a Political Crisis and Tremendous Instability

Everyone expected a defeat for President Macron in the second round of France’s elections for the National Assembly on June 19, but the results were far worse than any forecast. This opens a major political crisis and begins an explosive five-year term for the president.

French Trotskyist worker Anasse Kazib holds a megaphone and speaks to a crowd at a protest

Call: ‘For the Building of a New Revolutionary Organization in France’

Delegates at a national conference held in France on June 4 and 5 concluded their discussions and deliberations by issuing this call for the building of a new revolutionary organization in the country. The new organization aims to take up the mantle of the Far Left that has been undermined by a liquidationist perspective and a refusal to engage in the struggles of the working class and most oppressed in France.

French Activists Launch the Process to Create a New Revolutionary Organization

At a national conference in Paris on June 4 and 5, 100 delegates came together to begin building a revolutionary organization that can meet the challenges of the coming period and beyond.

Paul Morao

June 14, 2022

MOST RECENT

Several workers hugging in front of a Chipotle Store

The Unionization Wave Continues: Workers In Maine Have Organized the First Chipotle Store in the Country

Workers at an Augusta, Maine Chipotle have formed an independent union: Chipotle United. This is a clear indication that the unionization wave that started with Starbucks and Amazon is only growing stronger.

James Dennis Hoff

June 22, 2022

You Can’t ‘Green’ the Military (You Have to Fight It)

The armed forces of state violence are "going green", but they're no friends of the environment. We need an internationalist climate movement that's strongly opposed to militaries, police, prisons, and borders.

B.C. Daurelle

June 22, 2022

U.K. Railway Workers Begin Largest Strike in 30 Years

Amid high inflation, tens of thousands of railway and subway workers across the United Kingdom have declared at least three days of work stoppages to demand wage increases and other protections. Transport across much of the region has ground to a halt.

AMLO’s Dilemma and the Limits of the Pink Tide

It is essential to establish a clear definition of class character to understand AMLO’s government, taking into consideration the particular characteristics of its “progressivism” in its relationship with the mass movement and capital. Otherwise, one could lose one’s way in implementing socialist and revolutionary politics that genuinely express the historical interest of the oppressed and exploited.

Pablo Oprinari

June 21, 2022