TruthNotBS
Gold Member
- Mar 20, 2023
- 5,525
- 2,068
- 208
- Thread starter
- #221
FoxFyre, your argument that the financial support provided to corporations like Amazon and Boeing are merely "incentives" and not subsidies is fundamentally misleading.
1. The Nature of "Incentives"
You claim that the financial benefits provided to companies like Amazon and Boeing are "incentives" rather than subsidies. However, these incentives function effectively as subsidies because they involve significant financial concessions from the government to the companies. Whether it's tax breaks, grants, or land cost benefits, these are all forms of financial assistance that reduce the operational costs for these corporations, effectively subsidizing their business activities.Example: The subsidies and tax breaks provided to Boeing by the state of Washington amount to billions of dollars. These subsidies are not merely incentives but direct financial support that reduces Boeing's operational costs and boosts its profitability.
2. Economic Growth and Job Creation
You argue that these incentives lead to economic growth and job creation in local communities. While it’s true that large corporations can bring jobs and economic activity, this argument overlooks the broader implications:- Corporate Welfare: These incentives are corporate welfare, where public money is used to support highly profitable corporations. The benefits to the community can be outweighed by the cost to taxpayers, who fund these subsidies while the corporations reap the profits.
- Questionable ROI: Studies have shown that the return on investment (ROI) for these incentives is often questionable.
3. Dependency on Government Support
You claim that free market capitalism doesn’t rely on government support, yet the reality is that many of the largest and most profitable companies in the world depend heavily on government subsidies and support. This includes not just tax breaks and grants but also bailouts during economic crises:- 2008 Financial Crisis: During the financial crisis, companies like General Motors and AIG received massive bailouts from the government to prevent a complete economic collapse. These bailouts were not incentives but direct financial assistance to keep these companies afloat.
- Subsidies Across Industries: States and local governments in the US provide approximately $70 billion annually in subsidies to businesses, benefiting a wide range of industries from tech to energy to manufacturing.
4. The Myth of the Free Market
You romanticize the idea of a free market where businesses thrive without government intervention, yet this notion is far from reality. Modern capitalism is characterized by significant government involvement and support:- Monopolies and Oligopolies: The free market rarely exists in its pure form. Instead, we see monopolies and oligopolies where a few large corporations dominate entire industries, often stifling competition and innovation. These corporations benefit from regulatory capture, where they influence government policies to maintain their market dominance .
- Worker Exploitation: The so-called free market often leads to the exploitation of workers, with low wages, poor working conditions, and minimal job security. This exploitation is one reason why many workers turn to government support systems to survive.
5. Socialism and the Future
Given the trajectory of technological advancement, socialism offers a sustainable and equitable alternative:- Equitable Distribution: A socialist system will ensure that the benefits of automation and AI are shared equitably across society, rather than concentrated in the hands of a few.
- Public Ownership: Publicly owned production means that resources and profits can be reinvested into the community, improving infrastructure, healthcare, education, and more.
- Democratic Planning: Centralized planning does not mean top-down control; it can involve democratic participation from all sectors of society, ensuring that production meets the needs of the people, not just the profits of the few.
