Boeing, Corporate Welfare - Research Paper Example

Despite of increasing national debt of $6 trillion, big profitable corporations like IBM, Motorola, General Electric, AT&T, FedEx, Lucent Technologies, United Technologies, Raytheon, General Motors, Mobil Oil, Enron, Halliburton and Boeing continued to receive corporate welfare (Barlett and Steele, 1998; Sanders, 2013, Welfareinfo, 2013; Slivinski, 2007). Half of the financial backing from Export-Import bank (EXIM bank), about 45.6 percent is consistently received by Boeing making it the largest receiver; in 2011 alone it received $40.

7 billion as loan guarantees (De Rugy, 2012; Welfareinfo, 2013). In the present essay, critical evaluation of the issues concerning Boeing and corporate welfare is carried out. First it is defined for better understanding the term, then justification and motives behind corporate welfare are analyzed, followed by examining the degree of corporate welfare received by Boeing and its justification. The other aims of this essay are to know whether the people who pay the costs of corporate welfare necessarily reap the benefits and the case with Boeing.

This essay also puts light on corporate welfare consistency with the advocacy of free markets and non-interference by government and what ultimately, crates fobs, prosperity, and rising in incomes and the difference in perspectives and evaluation of corporate welfare at the local, national and international level. 2. Corporate Welfare Definition expend Corporate welfare refers to all the expenditures by the government towards direct and indirect subsidies provided to private sector and businesses.

Corporate welfare can be defined as “any federal spending program that provides payments or unique benefits and advantages to specific companies or industries” (Slivinski, 2007, p.1). The separate definitions of the two terms helps in understanding it better, welfare according to dictionary.com (2013, Para: 5) is “receiving financial aid from the government or from a private organization because of hardship and need”. And corporate welfare is nothing but “welfare for businesses usually given to big corporations” (Collins, 2009, Para: 2).

Time magazine in its special coverage defines Corporate welfare “as any action by local, state or federal government that gives a corporation or an entire industry a benefit not offered to others” (Barlett and Steel, 1998, Para:4). However in US corporate welfare system is very complicated and extensive. Its aim is not to improve standard of living or poverty prevention unlike the welfare provided to individuals, this and its expanse of interests makes it a very controversial and debatable issue because a single congressional committee cannot monitor or control it (Welfare info, 2013).

Corporate welfare can be in the form of subsidies, grants, aids, real estate, loans with low-interest rate, tax break, deferral, exemption, deduction, lower tax or a government service (Barlett and Steele, 1998). 3. Justifications for