The Corporate Welfare State

Discussion in 'Economy' started by Wiseacre, Nov 7, 2011.

  1. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    There's an op-ed in this morning's WSJ on this subject. No doubt it has been broached before, maybe it's worth an update or 2nd look. Anyway, it seems to me we should be looking at ways to avoid paying billions to companies who already make billions unless there are sound economic reasons to do so. I'd be interested if someone can provide some insight if such reasons exist.

    We're talking here about grants, loans, guarantees, bailouts, tax breaks, subsides, etc., to specific industries or firms. Most of the money goes to the big guys, who can reciprocate with large campaign donations or special favors to the elected reps who make it possible. And don't tell me it's just the repubs; bullshit, it's both sides and anyone who says different is either lying or misinformed.

    The op-ed says that the Cato Institute did a study back in '08, and came up with approx 92 billion in FY 2006. The gov't doesn't track this data, maybe it should, but inany case I'm guessing by now the figure is probably more than twice that.

    Seems to me that before we start talking about raising taxes on individuals we should take a look at business taxes first. Throw 'em all out and then add in anything that really makes economic sense. Far as I'm concerned, if a business can't make it without gov't welfare in one form or another then they need to fix their business model or go out of business. This way we can lower the corp tax rate down to a level that is competitive with other ountries; right now ours is the highest in the world.

    Maybe this would also help the tarnished mage of both gov't and Wall Street. Couldn't hurt.
     
    Last edited: Nov 7, 2011
  2. whitehall
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    whitehall Gold Member

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    So-called corporate bailouts are really loans which must be paid back. The car companies managed to pay back the loans. Foolish government loans for lofty (green) reasons seem to be fine according to the left wing media though. Solindra was in bad shape and yet the Obama administration authorized a loan in spite of advice to the contrary and the company went bankrupt. There is an economic axiom that the pop-culture union educated American people should be aware of. The federal government might sponsor "shovel ready construction jobs" but the federal government doesn't make a dime and never has. It confiscates money from you and me and the private sector. Corporations grow the economy not government.
     
  3. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    The federal gov't should not be in the business of giving loans. To anybody. And that includes mortgages for houses and student loans too.
     

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