Report from Baghdad

Bart's latest:

PERVERSE INCENTIVES

A few of the guys I've talked to lately hope that this war goes on and on. Why? Because they do eventually serve their time in the military, and they want to get out and cash in on the big bucks that the security contractors are making. And every indication is that the personal security contractor business here is going to keep growing and growing.

Now, the higher paid "security contractors" generally have to have some skills. The companies prize weapons proficiency and defensive driving skills. The defensive driving skills involve Hollywood stuff, manuevers known as boot-legs, j-turns and high-speed pursuit. So, not everyone is going to get a really high-paying (150 grand a year job). Mainly,ex-special forces, former Marine security guards and others will get the higher-paying jobs. Other guys will guard convoys and less important Iraqi officials. Iraqis like to hire Americans and South Africans, and there is quite a few South Africans here. In fact, the American companies also like to hire the South Africans. The only Iraqis that Iraqis hire for personal protection are members of their family.

Many of the American contractors are looking to establish a residence abroad. That way they can take advantage of a major tax break where they don't have to pay income tax on the first 80 grand of their income. http://www.irs.gov/taxtopics/tc854.html Military and U.S.G. civilian employees don't get to take advantage of this little goody.

A lot of the American companies here (e.g., GE, Bechtel, Raytheon) also have their own security contingents.

Basically, the relentless privatization of the war goes on. I think the big losers will be the U.S. taxpayer, who will pay most of these contracts, and the U.S. military. But you probably already guessed that.

Bart