What does Smedley Butler mean when he calls war a "racket"?

Butler defines a racket as something that is not what it seems to the majority of people. In the context of war, he argues that while the public sees a "crusade for democracy" or national defense, the reality is a business scheme conducted for the benefit of a small inside group at the expense of the many. He specifically notes that war is the only international racket where profits are reckoned in dollars and losses are reckoned in lives.

How did corporations and individuals profit from World War I according to the script?

During the war, many companies saw their profits skyrocket by hundreds or even thousands of percent. For example, the du Ponts' yearly profits jumped from $6 million to $58 million, and companies like Central Leather and International Nickel saw increases of over 1,100%. Butler also highlights massive waste, such as the government spending $1 billion on airplane engines that never saw battle and purchasing millions of mosquito nets for use in France, where there were no mosquitoes.

What are Butler’s three proposed steps to "smash the racket" of war?

Butler proposes a radical three-part plan to end war profiteering. First, he suggests "conscripting capital" by limiting the salary of all industrial executives, lobbyists, and military leaders to $30 a month—the same as a soldier in the trenches. Second, he advocates for a "limited plebiscite" where only those of military age who would actually do the fighting are allowed to vote on a declaration of war. Third, he suggests a "defense only" policy that legally restricts the Navy and Army from traveling more than a few hundred miles from the U.S. coastline.

What is the "bedside test" mentioned in the script?

The bedside test is a mental exercise Butler suggests for parents to help them see through war propaganda. He encourages mothers and fathers to look at their sleeping sons and consider whether any "well-worded war speech" or "beautiful ideal" is worth having that child killed or crippled in a foreign land. It is a call for individuals to prioritize the lives of their loved ones over the "war hysteria" generated by those who profit from conflict.

Why was Butler skeptical of the reasons given for the United States entering World War I?

Butler argues that the U.S. entered the war primarily to protect the massive loans made by American bankers to the Allied powers. He claims that an Allied commission informed the President that if the Allies lost, they would be unable to repay billions of dollars in debt. Consequently, the war became a "bailout" for the "inside group" of bankers and speculators, disguised as a fight for democracy.

War Is a Racket: Smedley Butler’s Explosive Whistleblow

33 min

21 sources

Mar 6, 2026

Politics History Society

Explore the shocking transformation of Major General Smedley Butler from decorated war hero to anti-war whistleblower as he exposes how corporate greed and industrial profits drive global conflict.

Best quote from War Is a Racket: Smedley Butler’s Explosive Whistleblow

War is a racket. It is the only one in which the profits are reckoned in dollars and the losses are reckoned in lives, conducted for the benefit of the very few at the expense of the very many.

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"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."

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"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC

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"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore

"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

@Pitiful

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"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."

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"Instead of endless scrolling, I just hit play on BeFreed. It saves me so much time."

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"I never knew where to start with nonfiction—BeFreed’s book lists turned into podcasts gave me a clear path."

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108

"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC

254

"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore

"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

@Pitiful

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"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."

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War Is a Racket: Smedley Butler’s Explosive Whistleblow

33 min

21 sources

Mar 6, 2026

Politics History Society

Explore the shocking transformation of Major General Smedley Butler from decorated war hero to anti-war whistleblower as he exposes how corporate greed and industrial profits drive global conflict.

Best quote from War Is a Racket: Smedley Butler’s Explosive Whistleblow

War is a racket. It is the only one in which the profits are reckoned in dollars and the losses are reckoned in lives, conducted for the benefit of the very few at the expense of the very many.