I’ve said this before (from experience). When you cut federal workers you don’t save money, you instead spend more on contractors.
https://www.nytimes.com/2025/03/14/business/economy/trump-doge-federal-contractors.html?smid=nytcore-ios-share
https://www.nytimes.com/2025/03/14/business/economy/trump-doge-federal-contractors.html?smid=nytcore-ios-share
Comments
A license to loot the Treasury
“We are living off his good graces,” a Pentagon official said of Musk’s role... 👇
https://www.newyorker.com/magazine/2023/08/28/elon-musks-shadow-rule
Mind boggling how difficult it is for some to understand this.
1. Additional layers of oversight. Managers have to also manage the contractor firm in addition to in-house staff. That firm will likely introduce parallel org charts for their internal mgmt, and that cost is billable. ~ 30% more overhead.
Total clusterfuck.
Also including selling off federal properties that are only usable for government purposes.
Rent seeking at best.
The UK already proved that government outsourcing is expensive.