“Power is the ultimate aphrodisiac.” Henry Kissinger, 1973
I recently returned to teaching selections from C. Wright Mills’s 1956 book, The Power Elite. The book was written in the midst of unprecedented prosperity in America, what economists Claudia Goldin and Robert Margo have called “the great compression,” when the levels of social inequality that peaked in 1929 and muddled through the next two decades were lowered and stabilized in the 1950s and 60s. It was the “good times” fifties. But Mills saw acutely that something had changed in America; that an unprecedented centralization of power “not before equaled in human history” had also been set in motion as the aftermath of World War II, whose continued development would undermine democratic institutions.
Mills claimed that “the Big Three” institutions—Corporate, Government, and Military—powered up into an interlocking directorate. Though he does not mention them, two coups of that era engineered by the CIA provide ample evidence of what Mills was describing. The overthrow of the Iranian government in 1953, which installed the Shah of Iran, was undertaken to secure British and American oil interests. Corporate oil, political, and military (particularly the burgeoning CIA) institutions realized their common interest in overthrowing the democratically elected regime of Mosaddegh. The long-term consequence was the empowerment of Islamic fundamentalism in the overthrow of the Shah in 1979.
In 1954 the CIA directed the overthrow of the democratically elected government of Guatemala, in order to keep the profits of United Fruit at their maximum. The secretary of defense, John Foster Dulles, his brother Allen Dulles, the head of the CIA, and the UN ambassador, Henry Cabot Lodge, Jr., all had investments in United Fruit, and as David Halberstam states in his book The Fifties: “The national security complex became, in the Eisenhower years, a fast-growing apparatus to allow us to do in secret what we could not do in the open. This was not just an isolated phenomenon but part of something larger going on in Washington—the transition from an isolationist America . . .
Read more: The Megapower Elite