As for whether or not private industry is cheaper than govt, let’s look at military pay.
Private:
PMC Company News:
• NEW! U.S. increases spending on contractors in Iraq
• NEW! Contractors US Spy Ops..
• FREE Sec. Co. Contact List…
• Resume Templates…
• PMC Assessment…
PMC COMPANIES:
At Blackwater USA’s training camp, private security contractors train for their arduous jobs in Iraq, where they serve on security teams, protecting and preserving not only the peace but Diplomats and VIP’s, and even assisting in protecting the military’s supply lines.
The pay for PMC’s in dangerous places like Iraq is generous. Experienced people can make $500-750 a day. But it’s not all for the money, for many its a new career path that has a sense of duty for country while helping to assist in building a new democracy. After the first Gulf War the US military went through a massive Reduction in Force, sharply reducing our forces, leaving hundreds of thousands of soldiers without employment. Many of them went on to work for the FBI, CIA, DEA, Border Patrol, etc.; others joined police departments, went into security and many started their own companies, doing what they knew best: providing security or training others to do the same.
SALARIES: (High Approx.)
PMC Agents: $150,000.00 per year (tax free.)
PMC Senior Agents: $175,000.00 per year.
PMC Asst Detail Leader: $200,000.00 per year.
PMC Detail Leader: $250,000.00 per year.
1) Basic pay for an O-7 to O-10 is limited by Level II of the Executive Schedule which is $14,975.10. Basic pay for O-6 and below is limited by Level V of the Executive Schedule which is $12,141.60.
2) While serving as Chairman, Joint Chief/Vice Chairman, Joint Chief of Staff, Chief of Navy Operations, Commandant of the Marine Corps, Army/Air Force Chief of Staff, Commander of a unified or specified combatant command, basic pay is $19,983.60 (See note 1 above).
Mind you, those top numbers for the govt are the **very top** positions. The private guys who have nowhere near the same experience, knowledge, or responsibility make more than the govt employees do (but probably get fewer benefits).
BTW, the military does not have people lining up to join, either. That’s one of the reasons the govt is using private contractors — and paying the price. They are trying to avoid a draft.