Wednesday, August 27, 2008

acquiring wealth because you know what to purchase

This blog is clearly hypothetical in nature so it isn't to be assumed that this is proof of any shenanigans by any former, current, or future council members.

The question was posed of me how does one get rich from serving on a volunteer board, council or in any political position ??

After much thought I can lay out a scenario to which any individual being in the right place at the right time with limited connections can regulate the flow of business in a manner so people with connections can earn a significant income.

Let's say there is a mayor of a city that has a development company and he uses that company to build business building, apartment complexes and loft areas throughout the state, how can this individual use his/her position to create wealth ?

In many instances the mayor and the council direct policy and can use the government machine to DIRECT development into certain areas of the city which have been economically challenged. To cite a case for this the city of Springfield has allowed for the infrastructure of certain parts of the city to fall into disarray which allows for property prices to drop to a level which allows for "certain" people in the know to purchase said property on the down slide of the pricing scale.

Once this spiral occurs the city government along with private property owners try to bring these challenged areas back to some semblance of business success, after all blighted areas in a city bring down the neighborhood and the moral of those who own property there.

There are steps that can be taken "off-record" which can benefit land owners in these areas and those in power and authority can purchase the properties in these areas at reduced rates since they can at a later date take directions to benefit these areas and thus raise the cost of the property they had purchased or refurbished.

Granted any elected official SHOULD abstain themselves from voting on these matters since they would benefit indirectly from this action, however the ground work for this would have already been lain out and thus the end result would be passage anyway. With a little foresight and manipulation anyone serving in any elected capacity can see their way to make money from the position of which they have been elected to.

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