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I’ve talked a lot about welfare and entitlements, when big government gives your tax dollars to people who don’t want to work, but corporate welfare is just as big of a problem, and just as destructive, if not more so. Corporate welfare is when big government gives your tax dollars to private (or semi-private) for-profit corporations. As I analyzed in great detail here; this is not capitalism, but it is a core part of corporatism, which big government economic system countries like the USA and Japan have embraced.
-By Caleb Jones
In all three cases, this is what is supposed to happen. Companies that are not run well are supposed to go out of business. Investors and business owners that make stupid decisions are supposed to lose their money and their jobs. This ensures that less investors and business owners continue to make stupid decisions in the future. It’s a beautiful, though imperfect, self-correcting system.
Under our system of government, this happens with small and medium-sized companies, but with giant corporations and banks, it works very differently. These entities, seduced by the vast power a rampant, $7 trillion per year unconstitutional government wields, directly influences the government. Using this influence, whenever these corporations are run incompetently, instead of going out of business like they’re supposed to, big government takes your hard-earned taxpayer dollars and hands it over to these corporations to keep them in business.
You get ripped off, and the corrupt and/or incompetent investors and CEO’s of these crappy companies get rewarded. Thus, the corrupt and/or incompetent behaviors continue forever. (Or at least until our government actually runs out of viable money, which will happen in our lifetimes.) Small and medium businesses greatly suffer, since you can’t compete with a giant corporation that gets free money every time it runs into trouble when you don’t get any of that free money yourself (nor should you).
If the nation doing this also leans left, like the USA, this problem is compounded by the fact that the government is always giving out personal welfare (welfare, food stamps, housing subsidies, free health care, and so on) to poor people on top of also giving it to big corporations, wealthy bankers, and CEO’s. Thus the cluster fuck the USA has become (as well as other corporatist nations like Japan).
Conservative estimates place the amount of money spent on corporate welfare by the US federal government at $100 billion per year, and that doesn’t include state governments which do this as well, and it doesn’t include all kinds of special treatment big corporations get in terms of special tax breaks, avoiding certain regulations, and so on. Banks, airlines, restaurant chains, oil companies, big farms, green tech companies, and all kinds of other business get your money every year. Free. Because of corporatism.
I’m against corporate welfare and individual welfare. Left-wingers scream their heads off about corporate welfare, but think spending hundreds of billions of dollars on poor people is perfectly fine. Right-wingers bitch about welfare and entitlement spending constantly, but you never hear them even whisper about corporate welfare. The government shouldn’t be doing either one. Local governments can do whatever they like, but the federal government should not give free money to any company, organization, or individual, ever, for any reason. That’s not free market capitalism. Neither is corporate welfare.
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Xyz 2018-02-18 07:03:04
Hypothetical question bd, if you were an elite running these crappy companies, would you take welfare or not only not take welfare but also call out other companies who do? Part of me says to that you would because you wouldn't give a shit about other people and try to profit from the collapse as much as possible but another part of me says that you wouldn't cuz you have set some really good moral standards and codes for yourself as you said in your book. Don't you think these elites are doing what they should do cuz government (and people of usa) is stupid anyway? What do you think about companies like Amazon which is pretty freaking amazing and doesn't require any welfare buy still destroyed small and local businesses? Or do you think those small and medium business are stupid and incompetent and it is what is.
MoChnk 2018-02-18 10:21:29
You know what's the German word for "citizen"? It's "Bürger". And the German word for "to bail" is "bürgen". So the German citizens are literally called German bailors because they have to bail out corrupt companies, haha! I kid you not. You can't make this shit up. Look it up and have a good laugh.
Caleb Jones 2018-02-18 11:03:30
Hypothetical question bd, if you were an elite running these crappy companies, would you take welfare or not only not take welfare but also call out other companies who do?Oh I'd take the money, but I'd also be completely 100% transparent and blunt about it. "Hell yeah, we here at XYZ Company take millions of free dollars a year from the taxpayers! That's guys! That's the system we've got, so that's the system we need to utilize to compete against our competitors. Feel free to change the system whenever you guys want so we and our competitors don't get this money, but until then, I'm buying my 5th mansion. See ya!"
Don’t you think these elites are doing what they should do cuz government (and people of usa) is stupid anyway?The elites are human beings behaving like human beings. It doesn't matter if you're talking about a CEO or a loser sitting on his couch all day, if you give human beings free money, they will take it, try to keep taking it, and expect more. That's why you shouldn't give human beings free money.
What do you think about companies like Amazon which is pretty freaking amazing and doesn’t require any welfare buy still destroyed small and local businesses?Amazon is amazing, but I believe they take plenty of (local and state) government money too, so they're not exempt from what I'm saying. Again, we do not have a capitalist nation. We have a corporatist nation, which is very bad.
So the German citizens are literally called German bailors because they have to bail out corrupt companies, haha! I kid you not. You can’t make this shit up. Look it up and have a good laugh.Ah, Europe.
Dave from Oz 2018-02-18 14:13:35
It's worth noting that quite a bit of warfare is corporate welfare. When the USA gives X dollars in military aid to some shithole, what actually happens is that those dollars go to US arms manufacturers, and the weapons get sent to said shithole.
Caleb Jones 2018-02-18 15:35:36
It’s worth noting that quite a bit of warfare is corporate welfare.Absolutely. The military industrial complex is classic corporatism.
PrepZ 2018-02-18 17:02:36
And, the much lauded Elon Musk is the poster-child for the guberment subsidized corporatism. He's not much more than a carnival barker who's selling the reinvented wheel to his millenial minions and old people who are baffled by his bullshit -- case in point, the multi-trillion program proposed for manned missions to mars. For what? For the "glory days" of Apollo? There are much less expensive ways for America to polish it's tarnished global reputation. Google the source of his venture capital for SpaceX and other projects, and how he's hidden other losses of failed co's into his guberment funded ventures (i.e. taxpayer bailout by proxy). Until then, just do you best from getting pick pocketed further by your Uncle Sam.
Caleb Jones 2018-02-18 23:17:44
And, the much lauded Elon Musk is the poster-child for the guberment subsidized corporatism.Yes, he is. It's depressing that such a man is so dependent on our tax dollars.
Antekirtt 2018-02-19 05:22:20
For what? For the “glory days” of Apollo? There are much less expensive ways for America to polish it’s tarnished global reputation.The whole point of going to Mars or returning to the moon is making the first steps in a program that isn't just flags and footprints, opening the space frontier. I would be extremely disappointed if humanity isn't on its way to settling the solar system by the end of the century. Last century was excusable, we went to the moon with slide rules lol, but in this one we're running out of reasons not to.
CrabRangoon 2018-02-19 13:55:09
@Antekirtt, I get the idea of space exploration BUT I'm also not sure why we should spend so much time and resources on getting to Mars or other inhospitable planets. If the planet was hospitable to human life(breathable air, water, ability to grow food) and just required proper infrastructure to colonize, I'd agree with the idea. I think we'd be better off working on tech to help life here on Earth and also find ways to travel much farther through space (getting away from combustion engines and getting to much faster/sustainable craft) to find what's beyond our solar system. In fact those 2 things should go hand in hand really since we still rely too heavily on fossil fuel sources here on Earth and eventually need to eliminate that reliance.
Investor 2018-02-20 00:52:08
You get ripped off, and the corrupt and/or incompetent investors and CEO’s of these crappy companies get rewarded.Let me ask from a different angle - not even saying I disagree with the article but - would this then mean such companies are good investment opportunities because they are relatively safe investments at least in short to medium term?
Caleb Jones 2018-02-20 08:34:24
Let me ask from a different angle – not even saying I disagree with the article but – would this then mean such companies are good investment opportunities because they are relatively safe investments at least in short to medium term?Often they can be, yes. For example, that's why US treasury bonds are pretty safe in the short and medium-term even though the US is a bankrupt cluster fuck. If they need the money to make good on those bonds, they'll just print the money or take it from taxpayers. So yeah, sometimes evil can indeed be a good investment.
Investor 2018-02-21 00:41:06
For example, that’s why US treasury bonds are pretty safe in the short and medium-term even though the US is a bankrupt cluster fuck.This is such strange stuff. Of course I imagine this will lead to more and more economic problems down the road.
Colombia 2018-02-21 06:56:39
What do you think about companies like Amazon which is pretty freaking amazing and doesn’t require any welfare buy still destroyed small and local businesses?Amazon is looking for a new location for it's second headquarters (HQ2) and are making local governments submit proposals and compete about how much corporate welfare they'll provide. Economists are signing petitions to "reject such egregious tax giveaways and direct monetary incentives for the Amazon headquarters." This John Oliver video shows how much liberals hate corporate welfare. Funny to see the hyper-liberal mayor of New York willing to "light up the city in Amazon orange". Looks like the liberals can put their hatred of corporate welfare on hold if they can bring some extra jobs to their city.