We pride ourselves as a nation on our ability to make great things. To innovate, to correct our mistakes, and to improve ourselves through the test of time, and through the consumer. While the merits of these systems are debatable, along with most other things, one thing is certain.
Corporate Welfare defies the basic nature of our economy, and of the free market.
But in order to be fair, let’s take a look at the company that receives the most funding from the Federal Government, which is Boeing.
Boeing is the company that makes the planes that we fly in. They make rockets, satellites, etc, and work on many projects for the Department of Defense.
In 2015, Boeing had a net income of $5.176 Billion.
They also receive around 10 to 15 billion dollars in subsidies every year, in addition to massive tax breaks, and the fact that they they apparently threatened the Washington State Legislature.
Is it right that one of the most profitable companies in the world receives billions of dollars in subsidies in tax breaks?
Could this money be spent to fund education, health-care, Pell Grants, or debt interest? Yes.It is not the responsibility of the US Government or the taxpayers of our country to fund these for-profit companies.
But, because of the disastrous Citizens United hearing, corporations are allowed influence in our government that objectively is corruption.
In 2015, Boeing invested around $3,647,000 in our elected officials, including members from both parties like Ted Cruz (R-TX) and Hillary Clinton (D). They rank 7th out of the thousands of companies that donate to politicians.
Lobbying is a profitable investmentHow well does it reflect on our society that companies actively spend money lobbying politicians for handouts from a government that needs the money?
We must ensure that no businesses receive handouts for CEO Pay, and instead must be expected to survive in the free-market without the assistance of the taxpayer.
Allowing these companies to receive billions of dollars in handouts violates the nature of capitalism itself, and nurtures a culture of reliability.
When the line between business and government blurs, the people lose.This is not a partisan issue. Companies fund our elected officials on both sides of the aisle, and companies have tentacles into the deepest recesses of our government.
Donald Trump promised to keep jobs in the United States. It initially appeared that he miraculously managed to do that with the Carrier deal in Indiana, but it turns out that in exchange for Carrier keeping the 2,000 jobs in the United States, which is a drop in the bucket in the US Labor Force, Carrier will receive around $7 million in tax incentives.
Donald Trump’s policy of bribing companies to stay is unsustainable in the long time, and lets the business community know that they will receive even more handouts if they threaten to leave. He is not a negotiator, he is bending over backwards to satisfy his corporate associates.
In order to remove this culture of dependence, there are a few things that we can do.