John Stossel wrote an interesting post on how political connections are used to keep out competition, with 4 examples. http://www.humanevents.com/article.php?id=38896
It is very clear there is an "in factor" when we see family members and well connected contributors employed by or involved with firms doing business with government. Ms. Blago was a gross case in point. Cellini is another prime example with his no bid contracts. He is still waiting for the shoe to drop.
Could it even happen here in our local scene? Can lack of a connection be a powerful barrier to entry?
I think there's at least a little evidence to suggest that is true. Remember that a partnership of two connected donors got to build the UI Research Park and probably will get to do the second phase. I'm not suggesting they haven't done a good job; I think they have. But the deal was a little too cute. I've heard local businesses suggest that the playing field is not always even when it comes to local government work or contracts.
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