The Washington Post has an article that says there Department of Defense wastes an extra 125 billion dollars on bureaucracy. No surprise there. For government employees, who really can't be fired, there is no feedback mechanism like there is in private industry. And the defense contractors are just as bad because they are paid to spend money, not make money*.
*Government contracting is usually done on what is called "cost plus fixed fee". The contractor totals up what it cost to do a job and then adds a percentage for their profit. If they make extra profit, the government takes it away, thus there is no benefit in saving money.
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