John Carney — Booz Allen and the Big Business of Big Government

Must-read. Key word: "economic rent." I would also add: "lack of accountability."

Something that (I assume) Austrian economists and Post Keynesians can agree on.

Blackwater (later Xe, now Academi) was the poster child for this, since it was created specifically for the purpose of contracting to government secretly, and insiders were given no-bid contracts supposedly due to the pressure of emergency. Although Blackwater attracted most attention, so much it became advisable to change its name, because it was the most flagrant, it was hardly alone at the trough.

Additionally, the "military-industrial complex" about which Ike warned was never dismantled after WWII and has been vastly expanded since. It accounts for some much government spending it is called "military Keynesianism."

CNBC NetNet

Booz Allen and the Big Business of Big Government

John Carney | Senior Editor