As an additional addition to the last note, I think it's interesting to consider how Wasilla became such a free-enterprise wasteland. To do this, we should probably look at Palin's career in Wasilla, which is not an edifying sight. We get the impression that Palin is ready to promote her extremist-separatist/ church/ elementary school friends, intensely vindictive, resentful and mean, and worse, often out of her depth running the small town of Wasilla. The New Republic has an article about this, that contains this description of her campaign for mayor.
Within a few months, Palin was officially challenging Stein and exploiting the cultural shift masterfully. She welcomed a national anti-abortion group in to carpet bomb Wasilla with pink postcards affirming her pro-life bona fides. She orchestrated an NRA endorsement and a mailing from the group falsely proclaiming Stein, a lifelong hunter, "anti-gun." (Stein complained to the local newspaper that Palin was telling voters he wanted to "melt down" all the firearms in the state.) And, in a move practically out of Karl Rove's playbook, she dwelled on how Stein's wife used her maiden name, going so far as to demand a marriage certificate as proof of their nuptials. Palin's campaign literature proclaimed her "deeply devoted to conservative family values"--all in the context of an ostensibly nonpartisan election. (Stein himself was a moderate Republican.)
Additionally from Raban's essay, her leadership was even more sinister.
There followed what some Wasillaites saw as her reign of terror. She demanded resignation letters from all the city managers, ridding herself of the museum director, the librarian (whom she was later forced to rehire), the public works director, the city planner and the police chief, who’d argued against the concealed weapons bill and had supported a measure to close the town’s bars at 2.30 a.m. on weekdays and 3 a.m. at weekends (the owners of the Mug-Shot Saloon and the Wasilla Bar had given money to Palin’s campaign). City employees were forbidden by her to speak to the press, and during her first four months in office she provoked a string of appalled editorials in the local paper, the Mat-Su Valley Frontiersman:
Wasilla found out it has a new mayor with either little understanding or little regard for the city’s own laws.
Palin seems to have assumed her election was indeed a coronation. Welcome to Kingdom Palin, the land of no accountability.
Mayor Palin fails to have a firm grasp of something very simple: the truth . . . Wasilla residents have been subjected to attempts to unlawfully appoint council members, statements that have been shown to be patently untrue, unrepentant backpedalling, and incessant whining that her only enemies are the press and a few disgruntled supporters of former mayor John Stein.
Surrounding herself with fellow congregants from the Pentecostalist Wasilla Assembly of God and old school chums from Wasilla High, the 32-year-old mayor set about turning the town into the kind of enterprise society that Margaret Thatcher used to extol. She abolished its building codes and signed a series of ordinances that re-zoned residential property for commercial and industrial use. When the city attorney ordered construction to stop on a house being built by one of her campaign contributors, she sacked him.