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May 27, 2003

UnReal Money

Offshore Companies Make $1B in Deals With U.S!
Innumerate Media Flaunt Ignorance!

Let's get this out of the way to start off with. As a general principle, the federal government should direct its business towards American based companies. In practice, that may not be the most efficient method of doing things, but in general and all other things being equal, when presented with the choice between a company based in Boca Raton or a company based in Bermuda, the Feds should do the right thing and pick the American-based company.

However, what if all other things aren't equal? What if the Bermuda-based tax dodgers underbid the patriotic Americans on the contract by a hundred thou or so? Technically this is your money, after all, and you make an equivalent decision dozens of times a day. Do you buy American, or do you buy what's best for your pocketbook? Do you bother to check the national origin of every single product you buy?

I was reading the label on my favorite jelly yesterday at breakfast and found out it was from France. I was shocked I tell you, shocked.

"It's not worth checking everything to save a nickel or two." I can hear you saying. And you're right. It's a more efficient use of your time and money not to check. It's only a few cents, or at most a dollar or two. The same holds true for Uncle Sam. That billion is .05% of the total federal budget. If your household budget is $50,000 a year, $25 bucks of your money is the equivalent of what the U.S. spent on contracts with offshore companies. That's a night out at the movies, or a case of good beer.

It's...unfortunate that nearly a billion dollars in federal money went to offshore companies last year, but it's hardly an amount worth revamping the system over. Whatever moral advantage gained would be more that offset by extra costs to the taxpayer, in the form of higher contract costs, not to mention the costs of monitoring expenditures to prevent contracts with offshore companies.

Posted by Bigwig at May 27, 2003 01:02 PM | TrackBack
Postscript:
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