Consultants are misused if employed on a constant basis instead of employing enough senior staff directly. There are well known drivers on both sides that tend to promote such an unhealthy setup. What is concerning at the US government is not cutting consulting but at the same time cutting staff and on top creating a hostile environment for senior staff. This is unprecedented and is not something one would do in the…
yet it happens.
The problem in any case is when the consultants/contractors/temp workers become entrenched.
It's really easy to do it - just put people who know less next to people who know more but are paid less. Then you can't keep your normal employees and have to keep hiring from outside.