Federal Government “Insourcing” is a Poison to Capitalism
February 19, 2010
Republican Congressional candidate Ben Loyola, focusing on private sector job creation and limited Government, criticized the growing practice of Federal Government “insourcing”.
“There is a recent and growing movement within the Federal Government to grow the number of Federal employees and limit the contracts that have been going to private sector businesses,” said Loyola.
As the result of Directives and Memorandums that were published last year by Defense and Office of Management and Budget, the Federal Government goal is to increase Government staffing levels to 80% and reduce contractor levels to 20%. Typically, contract support ranges from 30% to 75%.
The ripple effects of this “insourcing” are vast. It significantly reduces the state and local Government tax base by the transfer of private sector jobs to the Federal Government. It also results in lost private sector jobs due to shrinking private business revenue. Conversely, it creates larger Federal Government workforces which need higher Federal taxes and debt to sustain themselves.
“Increasing Federal Government employment should not be an economic strategy, at least not if we are to remain a nation of free market capitalism,” added Loyola.
Ben Loyola’s plan is to grow private sector employment and limit the Federal Government to its core functions, and do so in a cost-effective manner.
“Insourcing is a higher cost to the taxpayer with fewer job opportunities outside of Government, and a long-term poison to free market capitalism.”
Ben Loyola is a candidate for the Republican nomination in Virginia’s 2nd Congressional District. He’s a 25-year resident of Virginia Beach, US Naval Academy graduate, 30-year Navy veteran with combat experience, successful award winning businessman, and a true Conservative Reagan Republican.
