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America’s Real Welfare Queens: Fortune 100 Companies

in Liberator Online Archives, Welfare by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 14 of the Liberator Online. Subscribe here!)

Welfare QueensEarlier this year Open the Books, a non-partisan watchdog group advocating transparency in public spending, issued a genuinely shocking report that added up all federal grants, loans, direct payments, and insurance subsidies going to private companies.

Among its findings: corporate-welfare payments from the federal government to the Fortune 100 companies, from 2000 to 2012, amounted to more than $1.2 trillion.

The bulk of this was in the form of contracts between government agencies and private firms, with the largest going to the military-industrial complex. While these provide some services to taxpayers, such spending is difficult to control because the huge sums also fund a massive lobbying industry busily working for more such spending.

But contracts aside, staggering amounts of money were just given away as outright subsidies — taxpayer-funded handouts to the biggest businesses in America.

Writing in National Review Online, economist Stephen Moore summarizes: “$21.3 billion… was doled out in the form of outright income-transfer subsidies to corporate America. On average, each Fortune 100 company received about $200 million in such [taxpayer-funded] handouts.

“So who are the major corporate-welfare queens? The biggest grant recipients were General Electric ($380 million), followed by General Motors ($370 million), Boeing ($264 million), Archer Daniels Midland ($174 million), and United Technologies ($160 million).

“About $8.5 billion of this largesse came in the form of taxpayer-subsidized loans. The big winners here were Chevron, Exxon Mobil, Ford Motor Company, and other multibillion-dollar corporations whose franchisees received Small Business Administration loans.

“Archer Daniels Midland got just under $1 billion for USDA farm-program loans, and this doesn’t include ethanol subsidies. Another $10 billion was doled out through federal insurance…”

And the problem goes beyond even these staggering sums. Says Moore:

“That $1.2 trillion number does not include the hundreds of billions of dollars in housing, bank, and auto-company bailouts in 2008 and 2009, because those payments are kept mostly invisible in the federal-agency books. It also doesn’t include the asset purchases of the Federal Reserve, indirect subsidies such as the ethanol mandate that enriches large agribusinesses like Archer Daniels Midland…

“Amazingly, all but one of the Fortune 100 stood in the federal soup line to take at least some form of corporate-welfare benefit.”

Sums up Moore: “Imagine for a moment that you are sitting on your couch watching TV and there is a knock on the door. There in a corporate suit is an employee of General Dynamics with a tin cup and he asks if you would contribute a dollar for a research project. You would slam the door in his face. But somehow when the government collects a dollar from each of us and gives the money to General Dynamics, this is considered in Washington a wise ‘investment.’”

Read the next article from this issue here.

Go back to the full issue here.

They Said It…

in Liberator Online Archives by James W. Harris Comments are off

SECRETIVE US SPECIAL OP FORCES DEPLOYED WORLDWIDE: “A review of open-source information reveals that in 2012 and 2013, US Special Operations forces (SOF) were likely deployed to — or training, advising or operating with the personnel of — more than 100 foreign countries. And that’s probably an undercount. In 2011, then-SOCOM spokesman Colonel Tim Nye told TomDispatch that Special Operations personnel were annually sent to 120 countries around the world. They were in, that is, about 60 percent of the nations on the planet. … SOCOM is weaving a complex web of alliances with government agencies at home and militaries abroad to ensure that it’s at the center of every conceivable global hot spot and power center. In fact, Special Operations Command has turned the planet into a giant battlefield…” — award-winning journalist Nick Turse, “Why Are US Special Operations Forces Deployed in Over 100 Countries? That’s over 60 percent of the nations on the planet,” The Nation, January 7, 2014.

JUDGE: FOUNDERS WOULD BE “AGHAST” AT NSA: “[N]o court has ever recognized a special need sufficient to justify continuous, daily searches of virtually every American citizen without any particularized suspicion. … I have little doubt that the author of our Constitution, James Madison, who cautioned us to beware ‘the abridgement of freedom of the people by gradual and silent encroachments by those in power,’ would be aghast.” — from U.S. District Court Judge Richard Leon‘s Dec. 16 ruling that the National Security Agency’s bulk collection of phone records was “almost certainly” unconstitutional. The issue seems headed to the Supreme Court.

SNOWDEN JUSTIFIED: “I acted on mybelief that the NSA’s mass surveillance programs would not withstand a constitutional challenge, and that the American public deserved a chance to see these issues determined by open courts. Today, a secret program authorized by a secret court was, when exposed to the light of day, found to violate Americans’ rights. It is the first of many.” — NSA whistleblower Edward Snowden reacting to U.S. District Court Judge Richard Leon’s Dec. 16 ruling (above).

OUR UNCONSTITUTIONAL GOVERNMENT: “Article I, Section 8 of our Constitution lists the activities for which Congress is authorized to tax and spend. Nowhere on that list is there authority for Congress to tax and spend for: Medicare, Social Security, public education, farm subsidies, bank and business bailouts, food stamps and thousands of other activities that account for roughly two-thirds of the federal budget. Neither is there authority for congressional mandates to citizens about what type of health insurance they must purchase, how states and people may use their land, the speed at which they can drive, whether a library has wheelchair ramps, and the gallons of water used per toilet flush. The list of congressional violations of both the letter and spirit of the Constitution is virtually without end. Our derelict Supreme Court has given Congress sanction to do just about anything for which they can muster a majority vote.” — economist and syndicated columnist Walter Williams, “Parting Company,” Jan. 1, 2014.

JAY LENO STONES CONGRESS:  “In defending the budget deal, Congressman Paul Ryan quoted the Rolling Stones and said, ‘You can’t always get what you want.’ When it comes to Congress, here’s a better Stones quote: ‘Can’t get no satisfaction.’ How about that?” — Jay Leno Dec. 13, 2013.