The Bushites Have Outsourced Our Government to Their Pals

By Jim Hightower, Hightower Lowdown. Posted June 20, 2007.

The sprawling $43 billion homeland security department (HSD) is known chiefly for being the agency in charge of America's color-coded terrorist-threat alarm system ("Good morning, Americans. Today is Yellow. Be vigilant. Report all suspicious people.") It's boogeyman nonsense, of course, doing absolutely nothing to make our country safe. But such falderal helps those in charge obscure HSD's real mission: to serve as a giant federal cookie jar for corporate America. Go to HSD's website, and you'll find a prominent section called "Open For Business." There, on any given day, corporate shoppers can scroll through the hundreds of contracts and grants available to them. Just dip in and grab some cookies, each one worth from $50,000 to more than $80 million. Like the department's color codes, the vast majority of these projects do nothing to make our country safe. Instead, they are make-work studies, silly technologies, and useless systems that essentially serve as mediums for transferring billions of our tax dollars to a few corporate big shots. Ever helpful to its clients, HSD also maintains a private-sector office, headed by an assistant secretary who is not a security expert but a former banker from JP Morgan Chase. This office provides concierge service for cookie grabbers. For example, it recently held a corporate seminar, entitled "The Business of Homeland Security," offering "tips, hints, and directions" on how to grab the latest contracts and grants. Lest you think that patriotism or even national security might be the motivating force behind these government-industry confabs, a Sikorksy Helicopters executive who attended the session bluntly explained why he was there: "To us contractors, money is always a good thing."

Government by corporation

A monumental shift has quietly and quickly been taking place in the way the public's business is done -- and We the People have not even been informed about it, much less been asked to discuss and okay it. Corporations are taking over our government. No longer is it just a matter of big business's lobbyists and campaign donations perverting public policy. Now, politically connected corporations are also seizing day-to-day governmental operations for their own profit.

Since the Carter years, Washington has drifted toward more and more outsourcing of public functions to private contractors, but Bush Incorporated has turned that gradual increase into a fullblown, jet-powered rush to privatization. The shadowy and highly lucrative world of government contracting has boomed under George W, rising 86% since he's been in office and now totaling nearly $400 billion a year. Get this: There are now more people doing federal jobs under corporate contracts than there are people employed directly by the government. In other words, in today's government, corporate servants outnumber civil servants.

Bush likes to claim that he has cut the federal bureaucracy. In fact, he's increased it, but most of the people working in his government wear corporate logos. The New York Times recently reported that contract employees are in practically every agency, not merely doing perfunctory chores, but sitting in on policy sessions and drawing up agency budgets. "Even government's online database for tracking contracts, the Federal Procurement Data System, has been outsourced," says the Times.

This phenomenal change is the product not of managerial rationality, but of nonsensical anti-government ideology. Like the Iraq invasion, which was on the international agenda of the rabid neocons from Day One of Bush's tenure, privatization has long been on the domestic agenda of the laissezfaire ideologues. A January 10, 2001, report from the right-wing Heritage Foundation provided the roadmap. Titled "Taking Charge of Federal Personnel," it showed the Bushites how to storm into office and seize control of every agency. It stressed that they "must make appointment decisions based on loyalty first and expertise second," that "the whole governmental apparatus must be managed from this perspective," and that they should use "contracting out as a management strategy."

The official rationale for this privatization surge is that corporations are inherently more efficient than government and save the taxpayer oodles of money. Nice theory, but they aren't ... and they haven't. Start with this ideological assertion's most obvious flaw: By their very nature, corporations are loyal to their own bottom line, not to the country or to the common good. Any "efficiency" that they produce is derived from paying workers less (hardly a morale booster) and by taking shortcuts on the services or products they deliver. These "savings" are more than eaten up by the high profits, extravagant executive salaries, and other compensation that corporations demand -- costs that are not incurred when government does the job.

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From "The Hightower Lowdown," edited by Jim Hightower and Phillip Frazer, June 2007. Jim Hightower is a national radio commentator, writer, public speaker, and author of "Thieves In High Places: They've Stolen Our Country And It's Time to Take It Back."

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