One of government’s primary undertakings is transferring wealth, frequently from taxpayers to politically favored corporations. Sometimes these transfers are rightly called corporate welfare, but more frequently they are disguised with terms such as stimulus, bailout, or infrastructure investment. Government programs of this kind, whether financed with current taxpayer dollars, deficit spending, or promised via loan guarantee, divert resources from higher-value uses and reward firms that have invested in special interest lobbying rather than superior products and services. Subsidizing and bailing out private firms is a negative-sum exercise that destroys wealth and prevents the efficient redeployment of resources throughout the economy.
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The never-ending ferry tale: Why Washington shouldn’t subsidize ferries
The Trump administration recently announced $664.8 million in federal grants for ferry infrastructure, including $28.2 million for North Carolina’s Cherry Branch Ferry Terminal.
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Moment of truth: Reassessing Obamacare enrollment predictions
In 2025, several organizations predicted Obamacare enrollment in a world without the ACA’s expanded subsidies. That world became reality this year. Some groups’ predictions…
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Spirit Airlines shows mergers may prevent bankruptcies and bailouts
In 2024, Spirit Airlines, financially troubled since the COVID-19 pandemic and lockdowns, sought a lifeline through a merger with JetBlue Airways. Although neither…