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Americans have a weird thing with government agencies (or government-owned companies, e.g. Amtrak) simply hiring people to do a thing the government is tasked with doing, or buying things the government needs in order to do that thing. So instead our governments at all levels rely heavily on contracting it out to private companies to do the exact same thing but with higher cost and turnover and no long term expertise built in-house in the government agency which is now tasked with managing and overseeing all this contracting.

The MBTA in Boston also suffered from this and is now undergoing an effort under the new management to hire more in-house staff to do routine maintenance and other work that had previously been contracted out to a variety of private firms.



I suspect the theory is that private companies with many clients besides the government are less susceptible to bloat and waste than a government agency is because they are not a singleton entity and will be outcompeted if they are sufficiently inefficient.

A problem with this theory is that, I imagine, a lot of such companies basically only have contracts with the government. So it ends up with the same singleton problems, just outsourced.




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