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.
Featured Posts
Blog
Tit-for-Tat Tariffs Don’t Work: Boeing and Airbus Show Why
A 16 year-long aerospace subsidies dispute between the United States and the European Union began another round this week. The U.S. claims that the EU’s…
American Greatness
U.S. Economy Suffers Biggest Quarterly Decline Ever, Under Coronavirus Lockdowns
American Greatness cites CEI senior fellows John Berlau and Iain Murray: The U.S. House of Representatives and Senate are considering bills for additional coronavirus relief…
Blog
Does Uncle Sam Support Single Moms? The Question of Federal Funds for Strip Clubs
Should U.S. taxpayer dollars be loaned to strip clubs? What would have sounded like a joke just a few months ago is now a reality…
Search Posts
Op-Eds
The Wind Cries ‘Bailout!’
Texas oilman T. Boone Pickens launched a media blitz this week to announce his plan for us "to escape the grip of foreign oil." Now…
Citation
Shady HUD Secretary to Resign
Citation