Corporations and the Wealthy as welfare recipients

The poor are ridiculed for requiring public assistance. To the wealthy and many right wingers, this is where there hard earned money goes. But people see what they are looking for. What they miss is far more tax dollars go to the rich, and corporations than they do the poor.

The amounts of government giveaways to corporations are huge, ranging from the no-bargaining provision in drugs, to the cost-plus Halliburton contracts in defense, to the poorly designed auctions for oil, to the giving away of spectrum to TV and radio, to the below-market royalty rates for minerals. These giveaways are a pure transfer, from the rest of the population to corporations and the wealthy; but in a world of budget constraints, they are more than that, for they result in less spending on high-return public investments. Location 5421 (Price of Inequality) 

Great summary of how Republicans are more in favor of welfare than Democrats, that while Democrats favor helping those in need, Republicans favor welfare for those already wealthy by “giving away” advantageous market positions. So the next time someone bitches about the only reason someone votes for a Democrat is because he wants free stuff, you can explain that the only reason someone Votes for a Republican is because he wants someone else to get free stuff, unless he’s rich, then he wants it to go to him. But in short, this is a brief list you can bring up quickly as an example of substantive corporate welfare.

Among the most dangerous forms of corporate welfare are ones that limit liability for the damage the industries can cause—whether it’s limited liability for nuclear power plants or for the environmental damage of the oil industry. Not bearing the full cost of one’s action is an implicit subsidy, so all those industries that impose, for instance, environmental costs on others are, in effect, being subsidized. Like so many of the other reforms discussed in this section, these would have a triple benefit: a more efficient economy, fewer of the excesses at the top, improved well-being for the rest of the economy. Location 5433 (Price of Inequality) 

Insightful framing of corporate welfare very few would see and nearly impossible to refute. When others bear the cost imposed on society of these companies, not only are they receiving a substantive subsidy, but we are paying for it, effectively paying their CEO. So yes, when someone says we have no right to complain about what CEOs make because it’s not our money, yes it most certainly is our money, not only in government subsidies but in costs imposed on society by these companies for which we pay for.