Wednesday, September 17, 2008

Government Contracting


Again, Obama's naivete shows, regarding the USAF's competition for the next gen tanker:

But according to Reuters, Obama accused McCain of favoring policies that hurt American workers, saying that McCain "just doesn't get it. Just ask your brothers and sisters at Boeing."

So Obama, like Boeing's other buddies in Congress, is in favor of a free competition as long as Boeing wins it - and that, one assumes, is what McCain doesn't "get". So if Obama wins, and the competition resumes, how much money are EADS and Northrop Grumman likely to invest this time around? And given the Boeing's been virtually guaranteed a win, do we expect their next bid to be cheaper?

Government contracts have many drawbacks, but the one thing they have going for them is competition. Rival contractors keep you honest, generally. Remove the competition and you've given the contractor a license to steal.

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