No, it has everything to do with "The people who live and pay taxes in the municipality get to choose where their money is spent, and not allow Mr. and Mrs. Councilperson to tell their nephew, who runs Townsville Public Works, to pave the road because he plows the snow in the wintertime, too."

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>I'm thinking it has more to do with allowing a company to hire people for less than the value of their labor, then skim the "extra" money for profits.

There isn't a conspiracy hidden in plain sight for every misconception you have about the way the world works. Stop looking for one.

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>All government contracts should be cancelled and all government functions completed in-house.

And all kids should have their homework done before they watch cartoons.