The REAL welfare queens

Republicans have long been experts as getting the middle class to cast its collective gaze down the economic ladder while they pick their pockets from above.

Ronald Reagan understood this, and his notion of the "welfare queen" is still alive and well. If you don't think so, just look at the end of sympathy for the Katrina victims who lost everything and were scattered to the four winds. Yet there's a curious LACK of outrage about the REAL recipients of unwarranted government largesse:

Troubling new evidence tonight about massive waste and corruption by American contractors in Iraq. Nearly $10 billion of U.S. government money in Iraq is unaccounted for, $10 billion. And perhaps even more disturbing, taxpayer dollars enabled many of those contractors in Iraq to have better living conditions than our own troops. Lisa Sylvester reports from Washington.

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LISA SYLVESTER, CNN CORRESPONDENT, LOU DOBBS TONIGHT (voice over): Iraq is a cash cow for government contractors who collect $10 of millions of U.S. taxpayer dollars, and often don't deliver the goods.

The U.S. government contracted to have a prison built for 4,400 prisoners, the cost, $45 million. The taxpayers ended up paying $48 million for a prison a third of the size. In a separate case, the U.S. government paid the contractor Parsons $200 million to complete 142 health clinics, six were completed.

SEN. BYRON DORGAN, (D) NORTH DAKOTA: I think it's almost unbelievable that the oversight and the accountability is not there, no one seems to give a damn.

SYLVESTER: The Democratic Policy Committee held a hearing accusing the Republican-controlled Congress of not investigating rampant waste and abuse. Julie McBride, a former Halliburton worker testified that that perks meant for the troops were going to Halliburton big wigs.

JULIE MCBRIDE, FMR. HALLIBURTON EMPLOYEE: Halliburton employees also exploit requisitions to obtain luxuries that are not afforded to the troops, one example of this was a Super Bowl party for Halliburton employees only, at taxpayer expense. Halliburton requisitioned a big screen TV and lots of food for the private use of Halliburton employees.

SYLVESTER: Half of the $18 billion in Iraq reconstruction funds are unaccounted for. The special inspector general for Iraq reconstruction has opened up 40 new investigations of alleged fraud and corruption. The money wasted on government contracts comes directly out of the pockets of U.S. taxpayers. But it also costs troop morale.

PATRICK CAMPBELL, IRAQ-AFGHANISTAN VETERAN: Soldiers don't have a whole lot when they're sitting in 20-man tent, and when they see KBR employees driving around in their personal vehicles, and eating better food than them, it just totally drives you down.

SYLVESTER: So, far the Justice Department has not brought any civil or criminal cases to recover for contracting fraud in Iraq.

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SYLVESTER: Halliburton responded to today's hearing saying it takes any charges of improper conduct seriously. The company's code of conduct, quote, does not allow unethical business practices -- Lou?

DOBBS: And what about the issue of those contractors receiving better treatment, food, housing, living conditions than our troops in Iraq? Any investigation under way there?

SYLVESTER: This is a huge problem. It's one that many soldiers, and that our troops will come back, and we often hear these stories, anecdotally. As far as what Halliburton says, is it says that it is allowed to provide for the morale of its employees, but there clearly is a discrepancy in the way Halliburton has been treating its employees versus how and some of the services that the troops have been receiving, Lou.

DOBBS: That's a combat theater and I think the generals would have some explaining to do on that issue as well. As well as the issue, in this administration, in terms of the pay of private security forces and their living conditions as compared to American troops are doing the tough, tough job of trying to stabilize Iraq.

Do Americans honestly believe that there should be NO accountability about where their tax dollars are going, especially when Halliburton's profits are skyrocketing while it charges the government $45 for a case of Coca-Cola?