Another hidden cost we the taxpayer get to pay for in Iraq

[MadHound]

I was listening to the Marketplace Morning Report on NPR this morning coming into work. Heard an interesting piece about the "private contractors" over in Iraq. It turns out that every company granted an overseas contract must take out Workmans' Compensation insurance for their overseas work force. All well and good so far. However, the is a federal law stating that if an overseas contract is in a country experiencing armed conflict then the US government will reimburse the insurance agency issuing the Workmans' Comp policy for any monies paid out to overseas contractors in areas of armed conflict. In other words, we the taxpayers are paying for Workman's Comp money collected by all of those mercenaries and other private contractors over in Iraq.

I don't know about you, but I find this kind of corporate welfare outrageous. Not only is our tax dollars going to pay the overblown salaries and contracts of these death merchants, but now we have to pick up the Workmans' Comp tab when they are injured or killed. What ever happened to the free market gospel that these neocon warmongers supposedly worship? Is it only applicable when they don't have to pay the consequences? Why shouldn't Haliburton, KBR, et al pay the insurance money themselves? Because it cuts into their profits and means that they would actually have to be more mindful of their employees well being.

Just another example of how this damn war isn't about freedom, liberation, WMDs, torture, and any other noble cause. It is about money and greed, pure and simple. And you and I, the working taxpayer, are laying out billions of dollars for this endeavor that is enriching a few at the cost of many, both in money and lives

I would include a link to the original story, but they haven't put it up on their webpage yet, hopefully it will be up later on today. <http://marketplace.publicradio.org/>

[MadHound]

1. Kick n/t

[The White Tree]

2. Interesting......

There was a post a while back about whether our endeavor in Iraq could be compared to the American Revolution with the US in the role of the British Empire. I had just finished reading the 2-book serious on the American revolution written by Jeff Shaara - "Rise to Rebellion" and "The Glorious Cause".

In the book there was a description of how the Hessian mercenary force that was employed by the British would encourage their men to desert and would claim more injuries and deaths then actually occurred because England payed the Hessian monarchy for each man "lost". The more lost the more money made by the Hessian monarchy.

With everything else that is going wrong over there I wonder if this is one more abuse we will find out that is going on brought on by the abject stupidity and incompetence, not to mention the ignorance to history of our current administration.

[MadHound]

3. Great pair of books to read.

And yes, I think we are now playing the role of "British Empire"

The piece I heard on Marketplace said that this was costing us unspecified millions. Abuse just waiting to be exploited.

[newyawker99]

4. Hi The White Tree!!

Welcome to DU!! :toast:

[AP]

6. I think under every single rock in Iraq, there's a story like this.

I'd love to know the questions the torturers were asking the prisoners at Abu Ghraib.

"Where are the maps of the oil fields??"

"Where are the bank account numbers?"

"Where do you keept the gold?"

[AP]

5. Taxpayers have been insuring the profitablity of the insurance industry

for the last 20 years.

In California, the taxpayers insure houses built in places where there a frequent forest fires so that private insurance companies don't have to and so the builders can still get paid to build houses in places where they never would be if there a real free market (or a government which actually treated taxpayer wealth as if it were its own).

This is a buisness strategy that you find throughout the government, from top to bottom.

[MadHound]

7. Oh, I understand that all too well friend

Here in Missouri we have to pay the tax tab time and again just in order to keep building houses in known flood zones.

I just simply find this abhorent because it is simply another way we are subsidizing a mercenary army in Iraq. At least a house in a fire zone will simply be destroyed. It won't take out other innocent lives before it is injured or killed.

[AP]

10. Did you read that the Feds want to pass a law that allows them

to insist that people flood-proof, move or pay higher rates after repeat claims?

I think there was a vote on that yesterday. Not sure how it turned out. My response when I saw this bill was, "WHAT THE HELL!!! WE DON'T DO THIS ALREADY????"

Sometimes the free market is great at managing the marketplace...which is why the government is insuring for flood damage.

We're just underwriting the profitablity of politically well-connected industries doing work that is a net social cost. (And I'm talking about Iraq too.)

[seabeyond]

8. legally i believe. they shouldnt be getting workmans comp

as contractors in definintion they should be filing with 1099 or something their own taxes and paying themselves, not thru company. sounds like incompontence with halliburten. they should be screwing the contractors

[MadHound]

9. No, it is a federal law that overseas contractors

Provide workmans' comp for their employees, they have to take out an insurance policy for it. But instead of letting the free market decide what the price of that policy is, we reimburse the insurance company for whatever monies the company pays out to overseas contractors in war zones. WE are subsidizing these policies, not the contractors who are taking out the policies.

If a private company had to pay the full free market price of these policies, the price would be extremely high. So instead, you and I pick up the tab so that the mercenaries and their parent companies can continue to rake in those bloody profits.

[AP]

11. They're government contractors. But their employees are employees.

The people on the ground aren't the contractors. Their employers are the contractors.