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The private sector is not exactly shining right now either. Lot's of very dumb decisions by management of mid to large sized firms that cost the businesses and employees a lot. Yet the owners and CEO's are making huge amount of monies while doing it.The frontliners suffer because the people that decide where the cuts will be won't be cutting themselves or their immediate surroundings.
The civ equivalent of HQs are bloated, but that is where the decisions are made.