Corporate Welfare Destroys Free Enterprise

Corporate Welfare Destroys Capitalism

Just as welfare destroys and enslaves individuals, so it does for corporations. It breeds corruption, dependency, abuse and lawlessness. These days, what often appears to be free enterprise is anything but free.

Let me explain by first telling you two personal stories, and then I will give you some documentation concerning several companies.

Two Personal Stories
  • When we worked for the small local home builders and suppliers, they were as interested as we were about doing a good job for the customer. Why? Their reputation/ future business depended upon how they treated the customer. Word of mouth, you know.

If we came across a problem that the builder needed to correct before we did our installation he was grateful to be alerted so he could correct it. However as the international companies moved in destroying the smaller businesses, things began to change. Folks, not only did many of these companies not welcome our alerts, they insisted we install anyway.

Example: We were asked to install a sliding glass door for a well known international company only to discover the door was ordered (by the salesman of the company) too large to fit in the space. To install it, we would be required to cut into the beam of a load bearing wall which is highly unethical, and against code. It compromises the structure of the house, and problems for the homeowner would occur a few years down the road. We were told to install it anyway, and we refused because it was the wrong thing to do.

They found an installer to do the installation by cutting into the beam, and it passed inspection likely because the inspector never knew the beam had been compromised.

  • We had successfully worked for a window installation company for many years. It was eventually sold to a larger international company as is happening to so many small businesses these days.

The new company asked us to hire two other small companies under us as subcontractors. We were offered a very sweet deal: We were to receive $1000.00 per company per week, and would have to do nothing….not even payroll. The parent company would take care of everything. We did our usual background check only to find out these companies were both operating illegally. The owners had DUIs and could not get workman’s Comp. insurance for employees, nor could they obtain liability insurance. They were hiring illegally as well.

For those very reasons we declined the offer, and we lost the work we had been doing for eight years. Even though it has created much difficulty for our company to stand up against such injustices, we would do it again.

Does this mean all small companies are good, and all big ones are bad? No. But now let me explain what is happening below the surface …what our government has done to create these conditions.

Documentation: How Our Business World is Changing
Did you know that many Tea Party members are business owners? Just as farmers began telling us that we would become dependent on contaminated food from foreign countries if we did not pay attention to what was happening to them, business owners are now warning us.

On the surface one might think the success of WalMart (and many other large companies) over smaller companies has been wise use of free enterprise, but a little research reveals the truth..

“Until recently, it was not widely known that this wealthy company's aggressive U.S. expansion has frequently been financed in part by taxpayers through economic development subsidies. In 2004 Good Jobs First produced the first national study of the subject, documenting more than $1 billion in such subsidies from state and local governments to Wal-Mart; the actual total is certainly far higher, but the records are scattered in thousands of places and many subsidies are undisclosed.

Boeing Co. The aerospace giant has been an aggressive seeker of subsidies both in cases when it was relocating facilities and when it was staying put.

Cabela's Inc. This popular retailer of supplies for hunting, fishing and outdoor sports has consistently sought substantial subsidies for its growing chain of mega-stores.

Dell Inc. The computer maker has played hardball to get huge subsidy packages both for its corporate headquarters and for its assembly plants in several states, including a case in North Carolina where the subsidy package was larger than the cost of the facility.

Intel Corp. The big chipmaker has used the lure of billion-dollar fabrication plants to win repeated subsidies--including massive industrial revenue bond deals--from several states.

Nordstrom Inc. This high-end retailer is considered such a desirable catch for downtown business districts that public officials are willing to offer the company large payments to relocate in their jurisdiction--and Nordstrom certainly doesn't object.

Sykes Enterprises Inc. This operator of call centers has systematically extracted subsidies from numerous communities for facilities that are often later shut down as the company moves on to greener pastures, which are now usually overseas.

This is just a tip of the ice burg. Halliburton is another whole story of abuse not only to the taxpayer but to our troops as well.

It is nothing more than corporate welfare that favors certain business over others. The government gets to decide who will succeed, and who will fail…That is not free enterprise.

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