Gonzaga Debate Institute 2010

Spending Adv. – I/L – Hidden Costs

And, securitization costs more than 90% of the taxes of the US

Scahill 7 (Jeremy, Puffin Foundation Writing Fellow at The Nation Institute, is the author of the bestselling Blackwater, The Independent, Aug 10, http://www.uruknet.info/?p=35239 ) ET

While Iraq currently dominates the headlines, private war and intelligence companies are expanding their already sizable footprint. The U.S. government in particular is now in the midst of the most radical privatization agenda in its history. According to a recent report in Vanity Fair, the government pays contractors as much as the combined taxes paid by everyone in the United States with incomes under $100,000, meaning "more than 90 percent of all taxpayers might as well remit everything they owe directly to [contractors]

Some of this outsourcing is happening in sensitive sectors, including the intelligence community. "This is the magnet now. Everything is being attracted to these private companies in terms of individuals and expertise and functions that were normally done by the intelligence community," says former CIA division chief and senior analyst Melvin Goodman. "My major concern is the lack of accountability, the lack of responsibility. The entire industry is essentially out of control. It’s outrageous."
PMCs are 70% of the US intelligence budget

Scahill 7 (Jeremy, Puffin Foundation Writing Fellow at The Nation Institute, is the author of the bestselling Blackwater, The Independent, Aug 10, http://www.uruknet.info/?p=35239 ) ET

RJ Hillhouse, a blogger who investigates the clandestine world of private contractors and U.S. intelligence, recently obtained documents from the Office of the Directorate of National Intelligence (DNI) showing that Washington spends some $42 billion annually on private intelligence contractors, up from $17.54 billion in 2000. Currently that spending represents 70 percent of the U.S. intelligence budget going to private companies.

Spending Adv. – I/L – Hidden Costs

Insurance policies under PMC’s are often expensive, and the government often then has to reimburse the insurance companies
BASIC 4 (British American Security Information Council, http://www.basicint.org/pubs/Research/2004PMC2iii.pdf) GAT

If an injury or death claim is related to a ‘war-risk hazard’, the U.S. War Hazards Compensation Act provides for government reimbursement to insurance carriers. The definition of a war-risk hazard is limited and does not apply to most deaths in Iraq today. U.S. employers are required to provide limited insurance to all employees in war zones who are not from the host country, under the Defense Base Act. This excludes Iraqi employees. Such coverage is usually limited to $4,000 a month in the event of death or disability. Policies for additional coverage, which have risen in price, are often needed to attract workers to Iraq, with potential payments ranging from $250,000 to more than $1m.Firms are reluctant to reveal how much they are spending on security and insurance. It is estimated that for every $100 in salary paid by the employer, around $20 is spent on the life-insurance premium. In light of the worsening security situation, the insurance companies are forced to raise tariffs on a weekly basis.

Wage details for these companies are usually not made public – this is because they’re often high and can sometimes be three times as costly as a usual soldier
Isenberg 4 (David, member of British American Security Information Council, http://www.basicint.org/pubs/Research/2004PMC2iii.pdf) GAT

Because such information is proprietary and has privacy implications PMC’s and their parent companies usually do not make details available concerning their contracts, salaries, or number of employees. Given the obvious danger of working in a war zone where personnel are potential targets it seems reasonable that PMC personnel, especially those with highly sought after skills in short supply, can command high salaries. This was especially the case when PMC’s first started operating in Iraq in the spring of 2003 but since then market forces have in many cases served to moderate salaries. Michael Grunberg, spokesperson of recently closed Sandline International, put it this way: The market is bleeding out. Payments in Iraq exceed everything known so far. The best can get up to $1,200 per diem. Small companies, like three people somewhere in an office in Washington, in need of some 250 trained former special forces and some 4.000 local support, have no chance. It’s only a small reservoir of well trained former commandos world wide. People formerly earning $400 to $500 per diem from us, tell us today: “Sorry Comrade, but in Iraq I will earn $1,000.” PMC personnel, especially those with highly sought after skills such as former SOF personnel, can still command high salaries. Some claim that they can earn more than £80,000 a year. Reportedly, companies are offering yearly salaries ranging from $100,000 to nearly $200,000 to entice senior SOF personnel to switch careers. Members of the SAS can earn three times their pay when working for PMC’s. Short-term, high-risk work can bring much higher rewards. It is claimed that security personnel working a seven-day contract in cities like Falluja can make $1,000 a day. Blackwater employees are said to have been paid up to $2,000 a day, probably for a “three day special”. The Steele Foundation said it pays people willing to work in Iraq anywhere from $10,000 to $20,000 dollars a month. Mike Battles, co-founder of Custer Battles, downplays the level of pay: “I hear a lot of mistakes where people say, you know, a thousand dollars a day. That’s not a thousand dollars a day the person is receiving. That’s what someone is paying for that person, which includes insurance, equipment, travel and all of those types of things.”