The areas they might be able to cut costs would be hazard pay and civilian contractors. I know of plenty of cases where someone leaves the military and basically gets rehired to do the same job as a contractor for way more money. But military contracts tend to be very political things with a lot of pork involved. Can you imagine a San Diego representative arguing that we need to scale back military spending?
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I was thinking trying to reconcile this with the claim in the linked WaPo article:
Through nine years of war, service members have seen a healthy rise in pay and benefits, leaving most of them better compensated than their peers in the private sector.
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To whom are they referring when they say service members are compensated more than their private sector counterparts? In every case I know (a few) where an ex-service member went back as a private contractor, they were paid FAR, FAR more in the private sector than when they were in the public sector.
This is total BS. Those service members deserve every penny and every benefit they’ve been promised. If anybody deserves to be paid well, they are at the top of the list, IMHO.