Sunday, 7 June 2015

Rule #214: Corporate welfare

Giant corporations often cry aloud at the shame of welfare and the sin of living off the government and how various social programs should be cut back due to their costs. What is less discussed though is the amount of welfare that corporations receive through things like subsidies, government bailouts and tax incentives. Corporations can influence various governments to foster a more favorable environment for them to invest in. Often, under the threat of moving elsewhere, poorer countries are forced to lower or even eliminate certain corporate taxes to these large foreign investors.

 Businesses come and go. Just because a giant like GM has been around since 1908 doesn't mean they have to be around forever.
When the powers that be mismanage their business and run it into the ground, it goes under. That's the nature of business. There is no reason to authorize corporate welfare for this conglomerate with a publicly funded bailout. And it's bullshit to say that without this bailout thousands of jobs will be lost. First off, it's not a make work project. Secondly, just because GM stops building cars doesn't mean fewer cars are required in the world. It just means that well run companies like Ford and Toyota will pick up the extra market share and subsequently employ more people to meet the demand.

In the new world, there will be no bailouts for giant corporations.



  1. Yep, I pretty much agree. Meanwhile, those of us whose homes lost their resale value are still having to pay our original mortgages. I'm still trying to understand how the banks got bailed out, yet never had to adjust mortgages down for existing homeowners.

  2. Absolutely! There should have been an adjustment across the board. Thanks for the comment.


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