[cbs]

The government doesn't do anything at market rates. They employ below market rates, and contract external companies above market rates. This is (unfortunately) by design.

[reverend_gonzo]

For what its worth, government jobs are also a bit more secure and generally provide pensions and other benefits.

Whether those benefits are worth a decreased salary depends on the individual.

[jdotjdot]

Unfortunately, the pensions are largely gone the way of life 401(k)s, and with the furloughs that have been coming due to Congressional instability, those things are not really that true anymore.

[adamc]

Why do you say "by design"? Whose design?

[niggler]

A certain group of politicians want to replace all government functions with private contractors, and most of those are captured by various lobbying groups representing said contractors.