The ideas of corporate welfare exist in high doses today. Sometimes it is hidden in other words, but essentially it is the same thing, corporate welfare.

  • We need to protect the consumers.
  • We need to protect jobs.
  • We need to protect our economy.
They're all different and sound like a really nice thing to do, but it's all just doublespeak for corporate welfare.

Let's look at an example where consumers are getting bailed out; the sub prime issue. People do get bailed out, but most of the bailing out goes directly into the banks pockets. People ended up getting $500,000-$1,000,000 houses only making $30,000 a year. Of course you're not going to be able to pay that.

Protecting jobs is the most common one used. Money is handed out to failing businesses that can't even stay afloat because they have such a poor business model. Taxpayers are forced to keep some business afloat, so a small minority of people can hold onto jobs that are usually lost within a year.

Protecting the economy has to be about the most entertaining one. Farmers get a nice chunk of cash because they simply can't compete with foreign farmers. We need to give free money to farmers, so they can continue to run their inefficient business. I even heard Obama suggesting that businesses be given compensation for keeping jobs in the country. Just another form of corporate welfare.

This is all corporate welfare and it is bad for the economy. All it does is build an economy where businesses don't act smartly because they know the government will bail them out. Failure is a tool that can drive success. There is no need to waste resources on business models that don't make money. Let them fail and let the successes grow.


Posted by Christopher | 1:51 PM | | 0 comments »