10:49 am, May 30, 2015

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  • US cannot sustain 2 war rebuilding costs - Contractor reduction and insourcing
    Honest Broker
    American companies have become too dependent on the post-war Govt spending. Unfortunately, it covered up the underlying problem of too much outsourcing manufacturing by Corp America with the help of the politicians. Now they are trying to sell Americans its necessary for more green card visas to grow business, but that is only in rare cases it benefits Americans. The reality is that these foreign engineers and scientists will take lower salaries and take away slots in schools that were paid for by taxpayers. Another problem has creeped in over the decades is contractors cost 2 to 5 times more than just using Govt employees (Sept 2011 Bad Business Report by POGO.ORG). I suspect its because of the cost-plus-fixed-fee contracts versus fixed price. It would be cheaper to just hire Govt employees for jobs that will continue on indefinitely like IT, maintenance, Intel analysis, Engineering, etc. Most businesses do not outsource their core skills, but the politicians and Corp America have done a wonderful job of convincing Joe Public its a great idea. Guess what, its not so here comes the contracting cuts along with Govt employees.
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