Inefficiency wages

Almost half of the new, American-trained, 700 man Iraqi army have quit over disputes over pay and conditions. Has the administration never heard of efficiency wages? We need to pay these guys more than the market wage in order to encourage loyalty and gratitude as well as funneling some money back into the economy. It's not as if these soliders were costing us much. The pay scale in the new Iraqi army is $50 per month for a recruit, $60 per month for privates, and $180 for a Colonel.