The United States spent $826B on the military in 2024. Of that total, $423B (roughly 51%) went to procure products and services from non-government companies (these companies are referred to as “contractors”). Some of these contractors are small mom-and-pop, private businesses. Some are multi-national, multi-billion dollar public companies. Some of these companies’ products and services are sold exclusively or almost exclusively to the government (like fighter jets). Some of these companies make products that just happen to be bought by the US government but are available to any customer (like pens and pencils). There are many problems and inefficiencies with the way the government buys products and services from contractors.
Could nationalizing some of these companies lead to better outcomes in terms of product delivery, execution, and financial efficiency? Could growing the size and scope of the government in this way lead to savings for the taxpayer?
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