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>Is the increase in the use of private military contractors an indicator of these hidden interests, or is it a natural and logical development in warfare?
Both. Hiring a top-tier private army can be more effective than maintaining larger armed forces, and better than having to resort to a draft. There are undoubtedly situations where it makes no only financial but tactical sense to use PMCs.
>Is the targeting of young, low-income, poorly educated men by the recruiting apparatus morally reprehensible, or are they merely offering another option to a demographic that has few of them?
I see any effort to make men overcome their most basic instincts and become able to kill other human beings in an industrial scale as a deeply disturbing thing, regardless of the social placement of those men (or women). The young and poorly-educated are targeted because of how well they react to the conditioning, and the fact that they are poor is usually tied with the second, as well as being an extra encouragement from them to take any stable employment they can get. I am currently reading "On Killing" by Lt. Col. Grossman, and the mental toll that falls on humans when they are forced to commit acts that go against their very nature is testament to how abhorrent system that is currently in place is.
I agree with the previous poster in the sense that honesty would be a refreshing stance to be seen from our rulers, not only when it comes to matters of war. Truthful and accessible information would be perhaps the solution of a great deal of political and moral problems, not only when it comes to nations. But that is another discussion. Something related to that is the idea of men going into war out of their own volition, and conscious of the reasons behind the conflict. Two situations come to mind: mercenaries and religious fanatics.
Mercenaries choose to fight purely for personal gain, both in the sense of the money and their search for adventure. They have no illusions about their reasons to fight, and do so fully aware of the futility of trying to justify their actions from the perspective of "normal" individuals. Perhaps the only completely moral war would be one that was fought exclusively between mercenary forces somewhere where no civilians or their property could be damaged.
Religious fanatics are another possibility, as long as the religious leaders themselves also believe in the justification being used for the conflict (i.e. are being honest).
Naturally this is all meaningless if there are uninvolved victims (as it is usually the case). I'll end my post with a quote from M*A*S*H:
Hawkeye: War isn't Hell. War is war, and Hell is Hell. And of the two, war is a lot worse.
Father Mulcahy: How do you figure, Hawkeye?
Hawkeye: Easy, Father. Tell me, who goes to Hell?
Father Mulcahy: Sinners, I believe.
Hawkeye: Exactly. There are no innocent bystanders in Hell. War is chock full of them - little kids, cripples, old ladies. In fact, except for some of the brass, almost everybody involved is an innocent bystander.