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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GM Bad Deal

In his 1953 confirmation hearing for Secretary of Defense in the incoming Eisenhower administration, former General Motors CEO Charles “Engine Charlie” Wilson was asked how…

Business and Government