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You can bet if a private company is going to do business with the U.S. Government, it's going to be on the Government's terms.

 

For example, you're cutting grass at Cape Canaveral.  You're going to pay your lawnmower drivers a minimum of  $12.50 per hour plus any overtime, if applicable.  You're going to provide health insurance and workman's comp for them.  They will be driving a lawn mower that meets their job specifications.  And it goes on and on and on.

 

And if you're a minority or Native American contractor, you're going to get 10% of the jobs bid--no matter how high you bid.

 

At that point, you're working for the Government--and just hope that there will be enough profits left over to turn a Return On Equity on your investment  in the business.

 

The problem is that so many new outside contractors will not know how much it costs to perform under such a contract, they will not be properly capitalized and they'll be out of business in 6 months.  Then, the previous contractor will step in and take the contract over--at a big, big profit. 

I think its the Pottery Barn rule that applies here: "you break it, you own it". Since the early 1930s' our economic system hasn't been one that could be considered capitalism; it more resembles the patronage system of La Cosa Nostra. Corporations send money to political parties as trade for tax breaks and contracts or regulations that impede competition.

 

 It should also be pointed out that in the Corporatist economy we have, labor is a corporation using the corporatist definition. Receiving unemployment checks is corporate welfare.

 

Corporatism:

Corporatism (or corporativism) is the socio-political organization of a society by major interest groups, or corporate groups, such as agricultural, business, ethnic, labour, military, patronage, or scientific affiliations, on the basis of common interests.[1] Corporatism is theoretically based upon the interpretation of a community as an organic body.[2][3] The term corporatism is based on the Latin root word "corpus" (plural – "corpora") meaning "body".[3]

http://en.wikipedia.org/wiki/Corporatism

 

Government subsidies and tax breaks are different from a business that performs contracts for the government.  Wealthier farmers receive significant subsidies, as do ethanol producers.  Oil companies do not, despite Democrat propaganda to the opposite. 

 

The company that did most of the work for Obamacare's exchanges performed a service for the government -- and blew it.  The Contracting Officer should be fired, the person who wrote the contract, if it had no penalties for poor performance, should be fired and black listed.  The company should be banned from further government contracting. 

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