Wednesday, October 29, 2014

Spiraling Federal Contract Spending

Someone asked me how much of the US budget went to contractors.  It looks like about 1/3, it may have changed since 2012 though.


The total US Budget in 2012 was $3.54 Trillion, so
it looks like about 34% if this source is even close.

Those who advocate for reduced federal spending may be missing the notion that it would result in reduced contracting, reduced (federally funded) private sector jobs. Major employers in the US build weapon systems, fighter jets, cargo planes, warships, as well as IT and other service type companies that build government systems and provide support to government functions.

Some  miss the fact that some of the government 'failures' are also partly private industry failures.  It's government's failure not to detect and cut off the failing federally funded private industry projects, but those who clamor for running the government more like business..... they are placing too much faith and credibility in the private sector where money may trump mission.  The track record of contractors in government is littered with a sufficient history failures and fraud to suggest that contractors are no panacea in providing government services and functions any better than federal employees can, and do.

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