Corporate Welfare And What It Is Costing You

by Chuck McGlawn 2002

Editor's note. The research for this article took place in 2002, I am sure things have gotten worse.

Whenever the Federal Government moves into an area, offering financial assistance to some segment of our national life, it fosters in that segment a dependency. The recipient often times abandons traditional sources of income in favor of the easier government acquired money. Once established, breaking these dependencies can be very disruptive. Imagine what would happen to a family that looks to the government's “Aid To Families with Dependent Children” (AFDC) if the subsidies were suddenly eliminated. It would turn the lives of this family upside down. The normally generous American willingly goes along with this type of assistance. No one wants to even think about children going unfed, unclothed and unsheltered. But there are some other groups showing up with their hands out for a government hand out, not social welfare, but Corporate Welfare.

 Corporate welfare is not new, but it is growing. It has been around long enough we could begin calling it “Aid to Corporations with Dependent Employees”. (ACDE) President George W. Bush has proposed the following subsidies: To IBM $1.4 billion, to General Motors $833 million and to General Electric: $671 million. This is just a partial listing.

What exactly is corporate welfare? Corporate welfare is: (1) government grants and cash payments by the government to businesses, (2) government providing products and/or services, such as loans and insurance, to businesses at below-market prices,  (3) laws—and changes in laws—that help business’ bottom lines.(4) and government purchases of goods and services from businesses at above-market prices. (though laws are supposed to prevent this) In actuality, Corporate Welfare is a way for politicians to enrich their wealthy friends and corporate supporters -- at your expense.

Tax breaks and/or business tax credits do not constitute "Corporate Welfare ". Corporate tax breaks can be, and probably are, unfairly distributed by politicians to gain favor. However, allowing companies to keep more of their own money is very different from seizing money from taxpayers to dole out to corporations.

 The cost of corporate welfare is staggering. All told, there are more than 100 corporate welfare programs on the books. These programs are costing taxpayers, depending to whom you listen to, a whopping $167 billion annually according to “Foreign Policy In Focus” (www.fpif.org/papers/cw/). (Can you say, "Hobin Rood—that is stealing from the poor to give to the rich") According to the Cato Institute (cato.org), if corporate handouts were eliminated, the federal government could provide U.S. taxpayers with an annual tax cut four times as large as the “early” tax rebate checks mailed out in 2001.

 Leaders of the left, and leaders of the right and Libertarians are opposed to Corporate Welfare. However, the proponents of Market Access Program (MAP) that is a program that uses tax dollars to advertise US products abroad, contend that these subsidies generate $16 in export revenue for every $1 in taxpayer costs. Yet, U.S. General Accounting Office studies could not document any increase in exports due to MAP expenditures. Similarly, the Congressional Research Service could not confirm the job creation claims of OPIC beneficiaries. And sadly the tax loop hole that allows U.S. corporations to defer payments of more than $1.3 billion annually in U.S. taxes on foreign earnings until remitted actually encourages U.S. companies to invest overseas. On whose side is our government on anyway?

 

Defense Industry Subsidies account for over $8 billion annually. Some of the most egregious examples re: Government Support for Arms Export Promotion. These programs use the departments of State and  Commerce and the U.S. military to promote arms sales. Yearly costs $440 million. Military Export Sales Subsidies Prices. This program assesses foreign purchasers of U.S. weapons, a price that does not cover government research and development costs. This program costs $500 million annually.

 

Excess Defense Articles/Emergency Drawdowns. This program has us giving away or selling at steep discounts Defense articles that we bought to many of, at no discount, I might add. This near give away program has 'em standing in line, costing you $750 million yearly.

 Foreign Military Financing. You are going to love this one. It provides grants and subsidized loans to foreign countries for the purchase of military goods and materials. The price tag for this program is $3 Billion annually.

 Economic Support Funds Bolstering Arms Exports. It just keeps getting better. Provide cash payments to foreign importers to repay debts incurred to buy U.S. weapons. The price tag on this one is over $2 Billion.

 Forgiven/Bad Loans for Arms Exports. This program pays for the U.S. government-guaranteed loans—to foreign importers of U.S. arms—who just couldn't pay or had their debts forgiven. This program cost the now beleaguered taxpayer $1 billion yearly.

 Now let's do a recap of this finely tuned selling machine. First, we provide *free* the equipment for trade shows to sell military equipment. Then we use government and military staff to actually sell the equipment. Then we sell equipment at prices that do not recoup the research and development cost. Then when we offer the buyers subsidized low-interest loans. Then we guarantee those loans. Then when we do not sell enough equipment, the surplus is given away or offered at “fire sale” prices. Then when the buyers don't pay we forgive them their debt.

Seeing the united States Through The Correct Lense

by Chuck McGlawn 01/04/2020 united, with no initial caps is a clue

 

The Treaty of Paris says, “His Brittanic Majesty acknowledges the said United States, viz., [Listing each State]New Hampshire, Massachusetts Bay, Rhode Island and Providence Plantations, Connecticut, New York, New Jersey, Pennsylvania, Maryland, Virginia, North Carolina, South Carolina and Georgia, to be free sovereign and independent states, that he treats with them as such, and for himself, his heirs, and successors, relinquishes all claims to the government, propriety, and territorial rights of the same and every part thereof.

 

 

1. The Treaty of Paris ended the war for independence with Briton. It also turned the 13 British Colonies into 13 independent "countries".[See Article 1 of the Treaty of Paris} http://avalon.law.yale.edu/18th_century/paris.asp

 

2. Those 13 independent "countries" in an attempt to stitch themselves together in some form of confederation met independently in their own State Capitals and debated the various proposals and it was up to the States to ratify or not ratify. and made the decision as to the ratification or rejection of the Constitution in its final draft.

 

3. Ratification occurred after several proposals for a "central government" were soundly rejected. James Madison came to Philadelphia with a completed constitution for a central government. [Called the Virginia Plan.] It was rejected. Hamilton proposed abolishing the States altogether. He also proposed a hereditary monarch. The State delegates rejected these proposals in mass. The States were not going to replace the central power in England with another central DC Government power. The States were not going to give up their sovereignty. They were willing to delegate some powers to the DC Government. But they were not having anything that smacked of a central authority. The States ratified a limited "General Government" (Their name) 

 

4 To make my #3 crystal clear the States (independent "Countries") insisted on the additional limitation of the general government's powers. These first 10 amendments have come to be called "The Bill of Rights". Most States (independent "Countries") submitted a list of rights that each State felt important to them. Many of the submitting States’ the first concern was a variation of, "The powers not delegated to the general government are reserved to the States and the people."  A list of about 20 rights were proposed. And if you didn’t guess the very first right listed read, "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." This became the 10th amendment and the last one ratified. 

 

5. And to make absolutely certain that the rights of the States and the people would be guarded by the Constitution as ratified, Article V of that Constitution which made changing the Constitution very difficult, Not impossible but difficult. And Article VI which forbad the Congress from writing future laws that increased the power and authority o the DC Government.

 

The Constitution, as ratified by the 13 independent "Countries" did not delegate many powers to the DC Government. Paraphrasing Madison in the Federalist Papers, delegated powers will be “few and well defined” and powers reserved to the States will be, “numerous and undefined”. In other words, the STATES WERE NOT WILLING TO SURRENDER THEIR SOVEREIGNTY.  Additionally, no power of Judicial Review was delegated to the Supreme Court and The legislature was not delegated the authority to increase the power of the DC Government. And lastly, the Constitution has not been amended to include any of those powers.

 

All three of those powers are being exercised yearly by the DC Government. The Executive Branch routinely LEGISLATE and regularly DICTATE policies. And the Supreme Court has assumed and does exercise the power of Judicial Review and Congress has been legislating additional power to the DC Government almost from day one. 

Among the powers not delegated to the DC Government include:

Educate children    Funding Social Welfare    Health care providing

Park Building         Business Promoting        Speed Limit Setting

Farmer Saving       Weather reporting           Democracy Spreading.

Toilet Designing     Régime Changing            Educational Standards Setting

Email Reading        Database Keeping            Phone Tapping,

Or choosing winners and losers with Vote-Buying Bail-Out choices.

 

Your Libertarian Vote Can Be Counted Twice

By Chuck McGlawn 2008, revised 2012, revised 2016, revised 2020

First of all, do not try to outsmart the System. Those running it have been in place for decades, and have at their fingertips the accumulated knowledge of dozens of elections, on which to draw. They know exactly how to stack the cards against you. Break free from their machinations by doing something smart.

Has this ever happened to you? You want to encourage a friend to vote for Liberty, and you are afraid to come right out and say, “ I am voting for Jo Jorgenson Libertarian, for fear that your friend will grab the high road, by saying something like, “Don’t be stupid, Jorgensen the Libertarian cannot win and you will just be throwing your vote away.” If that has not happened to you then you are not putting enough effort into getting your candidate elected. Because in this election turn your friend’s statement back on him/her. if you are not in one of the six battleground States: Flordia, Arizona, Pennsylvania. Wisconsin, Georgia, or North Carolina  Your friend is throwing their vote away because the ONLY way their vote will be counted is if they vote for Jo Jorgensen. Let me explain.

In Primary and General Election, if you do not live in one of the battleground States, Flordia, Arizona, Pennsylvania. Wisconsin, Georgia, or North Carolina If you vote Democrat who cannot WIN or who cannot lose you are throwing your vote away. Think about it, you are casting ONE VOTE along with many millions and your vote will not change the outcome how much is your ONE VOTE worth Not very much. Conversely, If you vote Republican, you are throwing your vote away. Think about it, you are casting ONE VOTE along with many millions of others that will vote for a Republican (who cannot WIN in California) what is your ONE VOTE worth, among the other millions? Not very much.

Your ONE Democrat vote that will not change the outcome is wasted, or your ONE Republican vote that will not change the outcome is wasted. However, if your ONE VOTE is cast for Jo Jorgensen Libertarian your vote will actually be counted twice; once by the Republican System, and once by the Democrat System.

Therefore, if you do not live in one of the battleground States, Flordia, Arizona, Pennsylvania. Wisconsin, Georgia, or North Carolina and you are a Democrat not completely happy with the Democrat’s choice you can send them a message that you are not happy by voting for Jo Jorgensen Libertarian. If you are a Republican and you are holding your nose to vote for Trump, send the Republican Party a message that you are not happy with the Reps. Choice by voting for Jo Jorgensen Libertarian.