NYTimes -- Krugman -- Victors and Spoils

A few months ago Mr. Rove compared his boss to Andrew Jackson. As some of us noted at the time, one of Jackson's key legacies was the "spoils system," under which federal jobs were reserved for political supporters. The federal civil service, with its careful protection of workers from political pressure, was created specifically to bring the spoils system to an end; but now the administration has found a way around those constraints.

In addition, the big holdup on creating the Homeland Security department was removing it from the federal civil service system. There was no reason for this except to reserve jobs to political supporters.

We don't have to speculate about what will follow, because Jeb Bush has already blazed the trail. Florida's governor has been an aggressive privatizer, and as The Miami Herald put it after a careful study of state records, "his bold experiment has been a success — at least for him and the Republican Party, records show. The policy has spawned a network of contractors who have given him, other Republican politicians and the Florida G.O.P. millions of dollars in campaign donations."

What's interesting about this network of contractors isn't just the way that big contributions are linked to big contracts; it's the end of the traditional practice in which businesses hedge their bets by giving to both parties. The big winners in Mr. Bush's Florida are companies that give little or nothing to Democrats. Strange, isn't it? It's as if firms seeking business with the state of Florida are subject to a loyalty test.

So am I saying that we are going back to the days of Boss Tweed and Mark Hanna? Gosh, no — those guys were pikers. One-party control of today's government offers opportunities to reward friends and punish enemies that the old machine politicians never dreamed of.

If you have followed any politics at the local level privatization plans are a chance for the office holders to wring donations out of the companies with contracts. Nearly all savings are achieved by lowering the pay of workers. This is similar to the big business tactic of sub contracting out many departments. Transportation, maintenence, human resources, accounting, EDP, customer service, can be contracted out and the lower pay for workers pays for the profit margin of the subcontractors.