Senior IT manager here. It's not just in America.
The problem is that most managers don't give a shit. They are under enormous cost pressure, and standing up for principles and employees costs time and energy, especially when you're being given a hard time by your upper management.
Most of the time, they're not around for long enough to suffer the long-term consequences of creating a million monkey club.
Even worse, usually it's based on false cost models - the same sort of crap that leads you to hire (more expensive) external people rather than salaried staff because they're "variable cost". Budgeting for external suppliers often does not include additional costs for facilities, travel, management overhead, training, etc., as well as the intangible aspects of a body shop simply providing you with the cheapest shittiest junior guy they can get away with - and then refusing to do anything but the work that's exactly laid out in the contract (and badly at that).
I've run into this situation myself a number of times and it is morale-crushing.