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Blackwater became notorious for abuses while providing security services to the U.S. government in Iraq. "At least 90% of its revenue comes from government contracts, two-thirds of which are no-bid contracts." If you meant it as an example of abusive, government-provided security, I tend to agree, though I was thinking more of peacetime policing. For your #2, do you think the replacement cop will likely have the same freedom to abuse power when the customer has the choice of discontinuing payment for services?