Even as we go back to the 70s in energy policy, there are moves afoot to turn back the clock to the pre-Reagan/Contract era in other areas. One good example is the use of independent contractors to replace permanent government employees, which is somehow viewed as tainted by the profit motive. Specifically, Rep. Murtha and others have been railing against the use of independent contractors in Iraq. Michael Hardiman, a contractor himself, has a good piece on why this is misguided on CNS today:

By hiring contractors, the government can bring on experts in their fields, from personal security to linguistics to crop irrigation, without incurring the three major long-term costs of permanent government employees: pension, medical coverage and job security. When the job is done, the contractors are gone. Take Blackwater, for example, generally considered the most elite of the private security firms. It has no contracts with the Defense Department but a major deal with the Department of State to protect prominent visitors to Iraq (such as Rep. Murtha) and “high value” Americans working in Iraq. When traveling with my boss, I was protected by Blackwater teams. Every Blackwater contractor I met was a veteran of an elite military unit, and their Personal Security Details, or “PSD” protection teams, worked together seamlessly. This kind of quality, exposed constantly to the dangers of war, doesn’t come cheap. Some of the security contractors and specialists from other fields who are working in Iraq are, in fact, paid like generals — in terms of current salary. However, missing is the back-end compensation of a government pension, medical coverage and job security. Another difference is perks that a general officer or the secretary of defense may receive — such as a huge staff waiting on them and a very nice bomb-proof office in the Pentagon.

The same goes, of course, for independent contractors in just about every other area you can imagine. Flexibility has an intitial premium, but in the end it is more cost-effective for the quality of service needed.