Are the private contractors being hired by the government "enemies of democracy" and ideologically and morally wrong?If they are profiteering, yes; if they are merely profiting, no. Truman campaigned against profiteering, not profiting.
Profiteering isn't happening unless profits are unreasonably exorbitant to the extent of harming others. An oil company profiteers when it turns a $10 trillion profit by raising the price of gas so high that the economy spirals into a recession. A company that sells tanks or uniforms to the government with a 5% margin is profiting, but not profiteering. Companies supplying labor with a small overhead for support roles in war zones are doing the country a favor, and should be applauded.
And if no, how have times changed since the 40's that what was considered criminal activity, is now being employed by the U.S. Government itself, who persecuted it only 60 years ago?Laws now try to prevent profiteering on government contracts. If true war profiteering were widespread, you can bet the People would be screeching about it at the top of our lungs and frogmarching corporate execs to prison in swarms. It's not happening on the kind of scale it was in the 1940s, primarily because government profiteering is illegal, and partially because the Iraq war is microscopic compared to WWII. When we have a draft, rationing, thousands of casualties a day, and start melting our jewelry and plumbing into bullets, then we can start complaining about 1% profit margins being too high. As it is, most war profits pay the salaries of those American workers who improve the products we need to win wars. Most of us wish we lived in a world where wars weren't necessary, but it's not a perfect world.
As a footnote, Sen. Patrick Leahy (D-VT) has proposed the
War Profiteering Prevention Act of 2007. He claims profiteering is widespread, but it seems on occasion that he has profiteering confused with mere profiting. The existing antitrust and antifraud laws have been sufficient to regulate any real profiteering on government contracts, although they have a spotty record of enforcement. The bill
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Criminalizes war profiteering, which is defined as materially overvaluing any good or service with the specific intent to excessively profit from the war and relief or reconstruction activities
Profiteering from government contracts is already illegal, so Leahy's act wouldn't seem to "criminalize" anything that isn't already a crime, it just extends penalties to 20 years under war-related circumstances. Leahy's
previous attempt at similar legislation failed to pass in 2004, but received 46 votes.
My objection to the Leahy bill is that to some people, all profit is excess, so "excessively profit" is redundant; it would be better if the bill were more clear that moderate profits are fine, but exorbitant profits are not, perhaps using an explicit percentage scale so everyone can know in advance whether they are violating the law. The whole issue of redefining profiteering can be avoided by just keeping the laws already on the books the way they are, or by increasing penalties without redefining the concept.
BlackwaterIf
Henry Waxman's allegations against Blackwater are true, Blackwater would seem to be profiteering:
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At the lowest level, Blackwater security guards were paid $600 a day. Blackwater added a 36 percent markup, plus overhead costs, and sent the bill to a Kuwaiti company that ordinarily runs hotels, according to the contract.
That company, Regency Hotel, tacked on costs and profit and sent an invoice to ESS. The food company added its costs and profit and sent its bill to Kellogg Brown & Root, a division of Halliburton, which added overhead and profit and presented the final bill to the Pentagon.
Even if these charges are true, it may not rise to the level of profiteering if each level of markup covered legitimate operating expenses (worker wages, etc.), but apparently the Army is refusing to provide enough detail to explain away the markups.
Waxman's complaint that Blackwater should never have received any money seems tenuous, at best. Halibuton bought food and catering services from a company who supplied its own guards through a hotel company that subcontracted to Blackwater. Blackwater didn't have a direct government contract or even a subcontract directly through Haliburton, but was acting under the auspices of the food provider to help protect its supply chain. If the Haliburton contract had specified that all suppliers must use official US forces instead of providing their own private security, then Waxman might have a point; however, I don't think it very reasonable to expect a private food supplier to remain defenseless in a war zone. Haliburton or the Army should have arranged lower-cost security services if either had been aware that the food bill's security fees were the result of several levels of markup.