Corporate welfare is nothing new. It’s been around a long time.
It reared its ugly head most famously late in 2008 when the federal government, under the leadership of President George W. Bush, told us U.S. taxpayers would have to bail out those reckless risk-taking banks because they were “too big to fail.”
This is the same government that doesn’t hide its disdain for the poor who live on welfare after losing their jobs. But when the rich lose at the gambling table of the global economy, they’re covered by taxpayer dollars.
Not one of the CEOs of those big banks went to jail for their indiscretions. And now, eight years later, I hear tell, they’re doing even better than ever.
This must be remembered in the Michigan State Legislature’s votes this week on “bailing out” the Detroit Public Schools. 80th District State Rep. Mary Whiteford said she didn’t like spending public tax dollars on a failed school system.
Yet this same bunch of lawmakers, admittedly sans Whiteford, voted not long ago to chip in more than $250 million to help billionaire pizza magnate Mike Illitch build a brand new Red Wings hockey arena in Detroit. Illitch and Little Caesar’s get all the benefits of a gleaming new facility and the revenue that it will generate, yet the public is stuck with a $250 million bill.
To be sure, Republicans such as lame duck State Rep. Ken Yonker will say the facility will bring business to downtown Detroit and therefore should be regarded as economic development. Yonker championed the same corporate welfare scheme for the Pyramid in Gaines Township, insisting it will be a jobs creator.
It’s the old Republican mantra that goes back to the heady days of Ronald Reagan when supply-side economics was touted as the way to go, along with that there free market capitalism. The practice certainly has been good for corporate CEOs and their lieutenants, but I haven’t seen a lot of evidence over the past 35 years that it’s been good for common, everyday working folks.
I said more than 25 years ago that the rich are getting richer and the poor are getting poorer, which was greeted by guffaws from a lot of people. Now few people contest that assessment of the way things have been going.
And government has chosen sides, casting its lot with the rich, perhaps sharing some of the spoils in the form of campaign contributions and cushy jobs after their pathetic tenures have been term limited.
So the State House doesn’t really want to help the poor children of color in Detroit after their school system has been ruined even more by an awful emergency manager system rejected twice by voters but implemented by a governor and legislature that doesn’t give a damn what you think.
But we elect ‘em again and again. When will we stop this madness?
The author is crying crocodile tears, he supports crony capitalism (Democrats and Remocrats) when it benefits him (like bailing out irresponsible corporations like GM and banks/financial institutions to save jobs), but then he cries when the rich get richer. Well what did you think would happen? The results are predictable if you know anything about economics.
If free market capitalism was in place, where winners and losers were determined by the goods and services people desire and pay for, or you go out of business because the market doesn’t like your products or services. No government intervention, no bail-outs – just a competitive marketplace.
I agree with David when he decries the hockey stadium being built with taxpayer support – if it is a good idea and will bring business to downtown Detroit, Mr. Illitch should either build it himself or ask for a bond issuance paid for by investors. If others think it is a good idea and a potential money-maker, they will invest. The money from the taxpayer should never, ever be used for public entertainment. There are other money avenues with which to finance building arenas or stadiums. With all the problems in this state and legislators are paying for arenas with public funds is a disgrace!
Whatever you think or voice an opinion, you can’t say any of the problems with the bail-outs are a symptom of “free market capitalism” – it isn’t, call it for what it is – “crony capitalism”. Politicians love it when they can “bail out” businesses because then they will be willing subjects for any stupid idea they may come up with, like super low interest, no money down loans, and issuing loans and mortgages with poor or no credit history. GOVERNMENT IS THE PROBLEM, not free market capitalism – in fact, free market capitalism is the only known antidote to the runaway spending and debt we face. Live within your means, spend less than you earn – doing smart things with proven. strategies and ideas. That means both government, businesses, and individual citizens.