it's still a net negative to society due to the inefficiency, having presumably skilled people sitting around doing nothing due to bureaucracy instead of producing things of value. The opportunity cost is massive and the result is DC area codes being some of the richest in the nation off the backs of tax payers
Oh, yes. In terms of societal impact its far worse to pay people with valuable talents to not be productive than it would have been for the defense contractor to just pocket the money and pay it out as bonuses and dividends. But the system has its own logic and inertia.
