Your questions answered! A reader writes in to help out Thomas Frank of the WSJ:
Thomas Frank, railing against private contractors doing “government work” (pardon the oxymoron), in todays WSJ.
Of course, the subject is Katrina: ”To cover damaged roofs with tarps, certain contractors billed the government $1.50 per square foot of roof covered; some of the people who actually did the work got under 10 cents per square foot. Guess who kept the difference.” OK, Thomas – I can help you with that one. The company that MADE the tarp undoubtely pocketed a fair chunk of that $1.50/sq. ft.There was likely a retail/wholesale distributor representing the manufacturer, so they, probably made a bit, too, when they SOLD it to the contractor. The transport company that moved the tarp to wherever it needed to be utilized undoubtedly made some money, AND contributed significantly to the overall expense. And, oh yeah – the federal and various state governments undoubtedly got their cut through sales and payroll taxes. How much did that leave the contractor? Who knows? Mr. Frank certainly doesn’t, and he doesn’t even make the effort to find out. What dastardly capitalist plot will he uncover next? How will he top this expose of economic injustice? By breaking the news that hamburgers actually come from…*gasp*…COWS?