The Downfall of Boeing: Unpacking the Impact of Capitalist Culture and State Support in a Case Study

The Sky Falls: Boeing's 737 MAX Disaster

On October 29, 2018, Lion Air Flight 610 plunged into the Java Sea, claiming 157 lives[1]. Less than five months later, on March 10, 2019, Ethiopian Airlines Flight 302 crashed shortly after takeoff, killing 189 people[2]. Both tragedies involved Boeing's 737 MAX aircraft, revealing a network of corporate negligence, regulatory failure, and the troubling aspects of capitalist culture.

From Engineering Excellence to Profit Obsession

Boeing's evolution from an engineering-focused giant to a profit-centered corporation started with its 1997 merger with McDonnell Douglas. This change signified Boeing's move away from its engineering-based heritage toward a profit-oriented approach led by Harry Stonecipher, who was the former CEO of McDonnell Douglas[3].

Stonecipher brought a ruthless cost-cutting philosophy to Boeing, shifting focus from groundbreaking engineering and safety to financial metrics and shareholder value. This cultural change set the stage for future crises, prioritizing profits over safety and innovation[3].

The MCAS Debacle: Profits Over People

Boeing's pursuit of profit led to a fatal flaw in the 737 MAX design. To compete with Airbus's fuel-efficient A320neo, Boeing increased the engine size of the 737 MAX. This modification caused the plane to tilt upward excessively during takeoff, risking engine burnout. Boeing's solution? The Maneuvering Characteristics Augmentation System (MCAS), relied on input from just one of two Angle of Attack (AOA) sensors - a single point of failure that would prove catastrophic[4].

The Revolving Door: FAA's Regulatory Failure

How was such a design approved by the Federal Aviation Administration (FAA)? Years of budget reductions resulted in the FAA being understaffed, as many skilled engineers were drawn to higher-paying positions in the private sector. The agency took on a "self-regulating" strategy, reflecting the capitalist belief that market dynamics would guarantee safety[4].

Corporate Welfare: Boeing's Golden Parachute

Even as the 737 MAX crisis unfolded, Boeing continued to benefit from massive government support. In 2015, the company received $13 billion in corporate welfare, following an $8.7 billion tax break from Washington state in 2013 – then the largest in U.S. history[5].

The Human Cost: Justice Denied

Boeing was fined $2.5 billion for criminal conspiracy, with only $500 million allocated to victims' families. Meanwhile, then-CEO Dennis Muilenburg received a $62 million exit package, epitomizing the disconnect between corporate accountability and executive reward[6][7].

Capitalism's Autopilot: The Dangers of Unregulated Markets

The Boeing 737 MAX disaster exposes more than just corporate negligence; it reveals deep fissures in America's political and economic foundations. As Trump returns to the presidency, his "Agenda 47" promises to further erode regulatory safeguards, potentially exacerbating the conditions that led to Boeing's crisis.

This corporate failure and political shift reflect a national struggle. America faces the consequences of unchecked capitalism while embracing a leadership that advocates deregulation. Trump's election indicates a populist rejection of the status quo, yet his policies may exacerbate public discontent.

The Boeing saga and Trump's resurgence mark a critical point for American capitalism. The nation must decide whether to reinforce a system focused on short-term profits or pursue a new path that balances economic growth with accountability and public safety. This choice will influence not only the future of American industry but also the nation’s social contract.

References 

1. Boeing 737 Max Lion Air crash caused by series of failures

2. Ethiopian flight 302: second new Boeing 737 to crash in four months

3. Boeing’s Shift from Engineering Excellence to Profit-Driven Culture: Tracing the Impact of the McDonnell Douglas Merger on the 737 Max Crisis

4. Key events in the troubled history of the Boeing 737 Max

5. The 1997 merger that paved the way for the Boeing 737 Max crisis

6. Boeing's ousted CEO departs with $62M, even without severance pay

7. Boeing - Dennis A. Muilenburg - Biography

Written by Saaina Bajaj | University of Bath