3 ms·
Most of it, probably. These sort of contracts operate on a cost plus basis where the profit margin that Boeing takes home is fixed ahead of time. I hear from
by Symmetry 3y ago
Most of it, probably. These sort of contracts operate on a cost plus basis where the profit margin that Boeing takes home is fixed ahead of time. I hear from people doing software for defense contractors that they spend a lot of time being bored not doing anything productive, but by collecting their salaries they increase the cost of the software, which is the only way for the defense contractor to increase its profit.
- cushychicken 3y agoThis commenter understands how contracts work. I'll direct all the righteously indignant folks claiming "corruption" to you from now on. XD
- jtbayly 3y agoYou do realize that paying people to do nothing in order to take home more profit as a corporation, and charging both the worthless employee time and the extra profit for the corp that allows to the taxpayers is the definition of corruption, right?
- cushychicken 3y agoPaying people to learn how to make plane parts - even trash cans - is not corrupt. It's investing in manufacturing skills and knowhow. I'd wager most of the money spent on this venture went to the people designing and making the trashcan, not executive bonuses or admin fees.
- jtbayly 3y ago> Paying people to learn how to make plane parts Is the opposite of this: > being bored not doing anything productive I'm not sure why you claimed to agree with the latter being how government contracts work.
- Symmetry 3y agoSee my first reply to the topic for more details, but over a decade ago I worked for Group 33 at Lincoln Labs and we considered trying to keep Boeing from overcharging the government too much to be an unwritten part of our mission. But the problem is that the problem is genuinely complicated. It's a situation worth some outrage but outrage without understanding won't accomplish anything useful.
- cushychicken 3y agoLove the Lincoln Labs folks. Smart cookies working on tough problems. Also probably the best radar designers in the whole goddamn world. I am proud to be even tangentially associated with them.
- ren_engineer 3y agocharging the government to have employees do nothing(to the extent they complain about not having any work to do) is corrupt. It's the type of stuff you see in African countries with government funds being handed out for work that never happens especially considering the comment was referring to Boeing, a company notorious for their lobbying to get contracts they don't deserve
- ren_engineer 3y agoit's still a net negative to society due to the inefficiency, having presumably skilled people sitting around doing nothing due to bureaucracy instead of producing things of value. The opportunity cost is massive and the result is DC area codes being some of the richest in the nation off the backs of tax payers
- Symmetry 3y agoOh, yes. In terms of societal impact its far worse to pay people with valuable talents to not be productive than it would have been for the defense contractor to just pocket the money and pay it out as bonuses and dividends. But the system has its own logic and inertia.