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It's worth noting also, that according to A Pretext for War by James Baxter, these same corporations--whose infamous work in Iraq first came to light in the Abu Ghraib scandals--were influential in Pentagon circles before the war started.
As for Blackwater and other security firms, their roles as armed forces is extensive, unregulated and often unknown. But Singer asserts, "As it has been planned and conducted to date, the war in Iraq would not be possible without private military contractors." He quotes an estimate that over 1,000 contractors have been killed and 13,000 wounded, but they aren't counted in official casualties. The mercenaries are extremely well paid--the difference between Privates and Privatized is great. So it should not be surprising that, as Singer writes, "Halliburton's contract has garnered the firm $20.1 billion in Iraq-related revenue and helped the firm report a $2.7 billion profit last year. To put this into context, the amount paid to Halliburton-KBR is roughly three times what the U.S. government paid to fight the entire 1991 Persian Gulf War."
But this is only the beginning. Read on.As Wal-Mart grew to become "both the largest company in the world, and the largest company in the history of the world" (Fishman), so did the number of products supplied from China, so that as one scholar told Frontline, "China and Wal-Mart are a joint venture." And most big U.S. corporations that sell products must sell a lot of them through Wal-Mart, so they restructure to please Wal-Mart, and so they become part of that joint venture.
But just as a scandal involving Blackwater alerted many to the Hollow Military, the current scandal over the safety of products manufactured in China is alerting the public to just how much of what we buy is made (in whole or in part) in China, and how little is made by the American company whose name is on the label--including traditional and trusted names such as Fisher-Price, Mattel and General Foods.
The news came fast and furious, in a bewildering array of products, from deadly pet food and tainted toothpaste to leaded toys. Close to 20% of China's products, it turned out, did not meet its own health and safety standards. At first, Americans became extremely wary of Chinese products, especially food products. But then it became clearer that avoiding processed foods, vitamins and health products that don't have some ingredients made in China (including ascorbic acid in Vitamin C) is virtually impossible.
Then such trusted American companies as General Mills announced they would be doing more testing (while quietly admitting they hadn't been doing much before, or testing additives at all.) Whether the public was reassured, or simply in despair and denial, this storm passed. But it was a teachable moment in the extent of the Hollow Corporation.
For there are no Colgate Toothpaste factories in Anytown USA, not Anymore. (When U.S. Customs seized a supply of toxic Colgate, it was marked "Made in China" and "Made in India.) There are no Mattel or Fisher-Price toy factories with happy American elves. There is just a board of directors and a flotilla of managers coordinating subcontractors, including the well-paid ones (advertising and marketing agencies) and the very poorly paid ones (the workers who actually make the products.) That's American Know-How in 2007. Welcome to Hollow-een.