How Government Procurement Drives Up Costs 40 Percent

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Jun 25, 2026 · 10m · transcript

In this episode, Lucas and Luna dig into a single number that explains why the U.S. government pays roughly 40 percent more than private companies for identical goods—from office supplies to fighter jet components. They walk through the 2019 Government Accountability Office report on procurement inefficiency, the role of the 40-page rulebook known as the Federal Acquisition Regulation, and a concrete case: why the Department of Defense paid $1,200 for a 47-cent titanium bolt. Luna pushes back on whether it's all waste or some necessary precaution, and they end with a forward-looking…