Bad Idea: Paying Servicemembers More to Do the Same Amount of Work

From CSIS's Bad Ideas in National Security Series:

Because military pay is tied to the ECI, civilian wage increases drive commensurate increases in military pay. This helps retain an all-volunteer force that may be more inclined to leave military service if civilian wages were to increase at a faster rate. But, real increases in civilian pay reflect productivity growth. If the military matches those wage increases without commensurate increases in military productivity, we end up paying more each year for the same amount of output.

Cultural Norms vs. Market Norms

U.S. Air Force 934th Airlift Wing leaders salute Airmen as their aircraft taxis on the runway for takeoff. (U.S. Air Force Photo by Tech Sgt. Bob Sommer)

The Air Force has replaced its cultural norms with market norms. And, it cannot compete with the airlines' market power.