Blackwater, Monopsony, And The Taxpayer
October 29, 2007, 03:14 PM
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Leaving aside all the usual moral issues for the moment, as a taxpayer, I want to complain about this 21st Century innovation of using ex-U.S. military servicemen as highly paid mercenaries alongside much lower paid servicemen.

The government has forfeited its monopsonistic (i.e. sole employer) buying power over government-funded jobs killing people and breaking things, so the taxpayers are having to shell out much higher pay, either to Blackwater mercenaries or in six figure re-enlistment bonuses to U.S. military servicemen to keep them from going over to Blackwater. From the taxpayers' point of view, it's a ridiculous situation.

This is not a unique case restricted to the military. Much of the demand for privatization of traditionally governmental jobs comes from government employees themselves who want a competitive job market for their skills. As a taxpayer, I'm tired of paying to train somebody in a government job, then, when they are finally productive, having them jump to an outsourced for-profit job that costs me two or three times as much.

I want our monopsony back!