Posts tagged subsidies

“On average, each Fortune 100 company received about $200 million in (taxpayer funded subsidies.)”

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Source: http://www.againstcronycapitalism.org

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“On average, each Fortune 100 company received about $200 million in (taxpayer funded subsidies.)”

 

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Think about that. On average each of the largest 100 companies in the world receives $200 million from the US taxpayer, each year. Some more than others of course.

This is not capitalism. This is crony capitalism and it is dangerous to our economy and our society. If small government people are going to talk about how free markets are preferable to the incestuous system we have now they need to go after corporate welfare.

Each member of the House and Senate should be held accountable on a day to day basis. Who voted for what? And not only on whether a lawmaker voted to make a bill law, but also if a member voted to move something into (or out of) committee. What were the committee votes? What maneuvering happened?

If we want a less crony capitalist government it’s going to take some monitoring (and perhaps at least equally as important, reporting). We have the technology.

 

(From The National Review)
 
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).
 
Double- and triple-dipper 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, often in the form of surety bonds. The No. 1 federal insurance program was the Export-Import Bank, with Wells Fargo and JPMorgan Chase both receiving more than $3 billion in such aid and Citigroup and Bank of America receiving more than $1.5 billion in taxpayer backstop insurance. (Remember, this doesn’t include TARP money.) Deere, American Express, and even Walmart reeled in federal insurance as well. Amazingly, all but one of the Fortune 100 stood in the federal soup line to take at least some form of corporate-welfare benefit. In other words, as Open the Books founder Adam Andrzejewski puts it: “Mitt Romney had it wrong. When it comes to the Fortune 100, it’s 99 percent, not 47 percent, on some form of the government’s gravy train.”

Click here for the article.


Image credit: http://www.againstcronycapitalism.org
 

New Farm Bill Forbids Disclosure of Which Companies Receive Federal Crop Insurance

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Source: http://www.againstcronycapitalism.org

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New Farm Bill Forbids Disclosure of Which Companies Receive Federal Crop Insurance

 

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We want taxpayer money but we DON”T want the taxpayers to know who got their money. Better to leave that secret Mr/ and Ms. Congressperson (who we gave money to.) We wouldn’t want consumers to get upset. They might just boycott our products if they knew how much they were giving to us through the farm bill. I mean, many of the people buying our products don’t even get any subsidies of their own. We can’t expect them to pay twice for our stuff…Oh wait, I guess we do.

Another jack.

(From AllGov.com)
 
The new law was heavily supported by large agricultural businesses, many of which will benefit from the extension of the federal crop insurance program.
 
But the media and ordinary Americans won’t know who will receive these subsidies because the legislation keeps this information hidden away.
 
While the bill was working its way through Congress, a bipartisan provision in it would have required lawmakers and the Obama administration to disclose crop-insurance recipients.
 
But the agriculture lobby convinced members of Congress to do away with this section of the law.
 
Lawmakers were inclined to listen to the agricultural services industry since it gave nearly $42 million in campaign contributions at the federal and state level and poured more than $62 million into lobbying Washington, according to Nancy Watzman at the Sunlight Foundation.

Click here for the article.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

 

 

Should the NFL be allowed to continue its tax exempt status?

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Source: http://www.againstcronycapitalism.org

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Should the NFL be allowed to continue its tax exempt status?

 

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Senator Coburn is looking into whether the NFL should remain tax exempt.

As we have said before sports is particularly rife with crony capitalism because people take leave of their senses when it comes to “their team.” This is almost as true in college athletics as it is in the pro ranks. Quite a lot of tax payer money goes into fielding many state university football teams. Very few teams operate at a profit.

But the NFL sits particularly pretty. Between the special breaks and outright subsidies often given to team owners in stadium deals, and the NFL’s tax exempt status, we’re glad someone is looking into things.

The tax burden should be lessened for everyone. But it should be lessened for everyone.

(From ESPN.com)
 
The NFL’s exemption has a long history. Section 501(c)(6) was amended following the AFL-NFL merger in 1966 to include “professional football leagues (whether or not administering a pension fund for football players),” language to make clear that the league was still qualified under the section, despite paying pension benefits to individuals. However, professional sports leagues were already qualified under that section prior to the additional language. Major League Baseball has since given up its exemption, in 2007, reportedly because of changes to the code that required disclosure of executive salaries. The NBA has never been tax exempt.

Click here for the article.
 
Image credit: http://www.againstcronycapitalism.org
 

John Stossel – Stop Subsidizing The Rich (Video)

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Source: http://www.againstcronycapitalism.org

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John Stossel – Stop Subsidizing The Rich (Video)

 

Taxpayers will be the ones to rebuild this house. (Which should never have been built in the first place.)

Taxpayers will be the ones to rebuild this house. (Which should never have been built in the first place.)

 

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No Jobs For Americans

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Source: http://www.paulcraigroberts.org

By Dr. Paul Craig Roberts

January 10, 2014

No Jobs For Americans

 

The alleged recovery took a direct hit from Friday’s payroll jobs report. The Bureau of Labor Statistics reported that the economy created 74,000 net new jobs in December.

Wholesale and retail trade accounted for 70,700 of these jobs or 95.5%. It is likely that the December wholesale and retail hires were temporary for the Christmas shopping season, which doesn’t seem to have been very exuberant, especially in light of Macy’s decision to close five stores and lay off 2,500 employees. It is a good bet that these December hires have already been laid off.

A job gain of 74,000, even if it is real, is about half of what is needed to keep the unemployment rate even with population growth. Yet the Bureau of Labor Statistics reports that the unemployment rate fell from 7.0% to 6.7%. Clearly, this decline in unemployment was not caused by the reported 74,000 jobs gain. The unemployment rate fell, because Americans unable to find jobs ceased looking for employment and, thereby, ceased to be counted as unemployed.

In America the unemployment rate is a deception just like everything else. The rate of American unemployment fell, because people can’t find jobs. The fewer the jobs, the lower the unemployment rate.

I noticed today that the financial media presstitutes were a bit hesitant to hype the drop in the rate of unemployment when there was no jobs growth to account for it. The Wall Street and bank economists did their best to disbelieve the jobs report as did some of the bought-and-paid-for academic economists. Too many interests have a stake in the non-existent recovery declared 4.5 years ago to be able to admit that it is not really there.

I have been examining the monthly jobs reports for a decade or longer. I must say that I am struck by the December report. Normally, a mainstay of jobs gain is the category “education and health services,” with “ambulatory health care services” adding thousands of jobs. In December the net contribution of “education and health services” was zero, with “ambulatory health care services” losing 4,100 jobs and health care losing 6,000 jobs. If memory serves, this is a first. Perhaps it reflects adverse impacts of the ripoff known as Obamacare, possibly the worst piece of domestic legislation passed in decades.

I was also struck by the report that the gain in employment of waitresses and bartenders, normally a large percentage of the job gain, was down to 9,400 jobs, which were offset by declines elsewhere, such as the layoff of local school teachers.

Aren’t Washington’s priorities wonderful? $1,000 billion per year in Quantitative Easing, essentially subsidies for 6 banks “too big to fail,” and nothing for school teachers. It should warm every Republican’s heart.

A tiny bright spot in the payroll jobs report is 9,000 new manufacturing jobs. The US manufacturing workforce has declined so dramatically since jobs offshoring became the policy of American corporations that 9,000 jobs hardly register on the scale. Fabricated metal products, which I think is roofing metal, accounted for 56% of the manufacturing jobs. Roofing metal is not an export. Employment in the production of manufactured products that could be exported, such as “computer and electronic equipment,” and “electronic instruments” declined by 2,400 and 3,500 respectively.

Clearly, this is not a payroll jobs report that provides cover for the looting of the prospects of ordinary Americans by the financial and offshoring elites. One can wonder how the BLS civil servants who produced it can avoid retribution. It will be interesting to see what occurs in the January payroll jobs report.

Reprinted with permission from www.paulcraigroberts.org


 

About Dr. Paul Craig Roberts

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.

Boeing’s crony capitalism in America’s heartland

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Source: http://www.againstcronycapitalism.org

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Boeing’s crony capitalism in America’s heartland

 

Boeing Business Jet Family K63803

 

Everywhere Boeing goes subsidies follow. Without fail. In defense, in commercial aircraft, it doesn’t matter. It almost appears that subsidies are built fundamentally into Boeing’s business plan.

 

Actually, subsidies are built fundamentally into Boeing’s business plan.

The airline manufacturer even has its own taxpayer subsidized bank in the Export Import Bank of the United States. Sweet!

Not sweet for the taxpayers, but hey who cares about them?

(From The American Spectator)
 
Nixon is urging Missouri lawmakers to adopt a special tax package that would pay Boeing up to $75,000 per job per year — based on annual subsidies of $150 million spread over a minimum requirement of 2,000 jobs. No doubt that will strike some observers as money well spent — given much higher subsidy costs in other areas, such as solar energy, where federal subsidies have exceeded $350,000 per job.
 
Nevertheless, there are good reasons for being strongly opposed to the Boeing package.

Click here for the article.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

 

John Stossel – Detroit Gutted By Government

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John Stossel – Detroit Gutted By Government

 

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Published by XRepublicTV

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John Stossel discusses the demise that is Detroit with guests Darcy Olsen and Shikha Dalmia, regarding causes behind the Detroit collapse and other cities following a different model running in the black unlike the bankrupt situation facing Detroit.

Thinking Sandy Springs, Georgia is a model worth much more study.

U.S. Govt. Funnels Billions of $$$ into Junk Food, Equivalent to Cost of About 52 Billion Twinkies

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Source: http://libertycalling.net

Posted by Judy Morris


U.S. Govt. Funnels Billions of $$$ into Junk Food, Equivalent to Cost of About 52 Billion Twinkies

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Children today are three times more likely to be obese than three decades ago, while more than one-third of U.S. adults are obese. These obesity rates are directly tied to the number of people dying every year from heart disease, stroke, type 2 diabetes, and some forms of cancer. While the U.S. government would have you think they have your best health interests in mind, there is evidence to the contrary. Not only do they support our growing dependence on dangerous prescription drugs and the proliferation of genetically modified crops, but they also fund the junk food industry through subsidies.

A recent report from U.S. PIRG (a federation of state Public Interest Research Groups) indicates that since 1995, the U.S. government has spent more than $19 billion subsidizing corn and soy junk food ingredients.

That report, “Apples to Twinkies 2013: Comparing Taxpayer Subsidies for Fresh Produce and Junk Food”, says that the government funds more junk food than fresh fruits and vegetables. Though the government spends an estimated $292.5 billion on all agricultural subsidies since 1995, only $689 million went to apples (the “only fruit or vegetable to receive significant federal subsidies”). $689 million for apples compared with $19.2 billion for junk food is a serious disparity.

Read the rest at Natural Society, here.

“Small government conservative” lawmakers who directly benefit from farm subsidies

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Source: http://www.againstcronycapitalism.org

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“Small government conservative” lawmakers who directly benefit from farm subsidies

 

 ”Stephen brings his personal experience as a successful businessman running a large agriculture operation to Washington D.C. and understands, firsthand, that jobs are not created by Washington bureaucrats, but rather by hard-working folks in Tennessee.  He is committed to taking every possible step to empower people to invest and create jobs, cut government spending and make Washington more accountable to taxpayers.

- This is from the website of Representative Stephen Fincher of Tennessee who according to the attached article received the most agriculture subsidies of any member of Congress in 2012, $70,574.

If he really wanted to reduce the burden to taxpayers he could give that $70K back I suppose.

Many a rural Republican will go on and on about our need to reduce the size of government, and why we need to end waste and abuse in the District of Columbia. Some even talk about how crony capitalism is wrong.

Many of these same lawmakers however pony right up to the taxpayer funded trough when it comes time to hand out corn, sugar, or milk subsidies. These subsidies cost billions and billions of dollars.

FULL STORY

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Related post:

Tennessee Congressman Got Farm Subsidies, Denounces Food Stamps

Congressman Ron Paul’s Farewell Speech to Congress (Video & Transcript)

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A true statesman and humanitarian, Dr. Ron Paul, simply states the road we are on verses the road we should be on, explaining both consequences and rewards.  I feel no individual in office can fill his mighty shoes, but that is not necessary, as the time is now to advance the cause of Freedom and Personal Liberty and the person to carry that cause is you and I, as individuals uniting to create a critical mass, so often mentioned by Bob Schultz and others.  The revolution is now in our hands and we each will decide how best to promote the battle for Liberty!

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Video Location: http://rtr.org/vid/5446/congressman-ron-paul-s-farewell-speech-to-congress

Transcript Location: http://www.campaignforliberty.org/national-blog/transcript-of-farewell-address/

Much thanks to Gary Franchi and !

Congressman Paul’s final speech on the House floor before leaving Congress

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Below is the transcript of Ron Paul’s farewell address to Congress:

 

Farewell to Congress

This may well be the last time I speak on the House Floor.  At the end of the year I’ll leave Congress after 23 years in office over a 36 year period.  My goals in 1976 were the same as they are today:  promote peace and prosperity by a strict adherence to the principles of individual liberty.

It was my opinion, that the course the U.S. embarked on in the latter part of the 20th Century would bring us a major financial crisis and engulf us in a foreign policy that would overextend us and undermine our national security.

To achieve the goals I sought, government would have had to shrink in size and scope, reduce spending, change the monetary system, and reject the unsustainable costs of policing the world and expanding the American Empire.

The problems seemed to be overwhelming and impossible to solve, yet from my view point, just following the constraints placed on the federal government by the Constitution would have been a good place to start.

 

How Much Did I Accomplish?

In many ways, according to conventional wisdom, my off-and-on career in Congress, from 1976 to 2012, accomplished very little.  No named legislation, no named federal buildings or highways—thank goodness.  In spite of my efforts, the government has grown exponentially, taxes remain excessive, and the prolific increase of incomprehensible regulations continues.  Wars are constant and pursued without Congressional declaration, deficits rise to the sky, poverty is rampant and dependency on the federal government is now worse than any time in our history.

All this with minimal concerns for the deficits and unfunded liabilities that common sense tells us cannot go on much longer.  A grand, but never mentioned, bipartisan agreement allows for the well-kept secret that keeps the spending going.  One side doesn’t give up one penny on military spending, the other side doesn’t give up one penny on welfare spending, while both sides support the bailouts and subsidies for the banking and  corporate elite.  And the spending continues as the economy weakens and the downward spiral continues.   As the government continues fiddling around, our liberties and our wealth burn in the flames of a foreign policy that makes us less safe.

The major stumbling block to real change in Washington is the total resistance to admitting that the country is broke. This has made compromising, just to agree to increase spending, inevitable since neither side has any intention of cutting spending.

The country and the Congress will remain divisive since there’s no “loot left to divvy up.”

Without this recognition the spenders in Washington will continue the march toward a fiscal cliff much bigger than the one anticipated this coming January.

I have thought a lot about why those of us who believe in liberty, as a solution, have done so poorly in convincing others of its benefits.  If liberty is what we claim it is- the principle that protects all personal, social and economic decisions necessary for maximum prosperity and the best chance for peace- it should be an easy sell.  Yet, history has shown that the masses have been quite receptive to the promises of authoritarians which are rarely if ever fulfilled.

(more…)

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