Americas Corporate Welfare Program - Essay Example

America’s “Corporate Welfare” program officially began in the 1930s but traces its roots back as far back as the founding of the country. One significant instance of Corporate Welfare intervention occurred in 1887 when the government began to regulate the railways. This was the result of several businessmen complaining that the railway companies were using unethical tactics and driving them out of business. The events led to a depression and the government began to regulate the railways to get the country out of the depression faster (1).

This led to the government subsidizing agriculture as well as other industries. Agriculture has traditionally been the most widely subsidized by the U.S. government (2).

However, many counter this argument by saying that only big companies and those who are “already rich” are subsidized at the expense of middle-class and poor people (4). They point to the recent example of General Motors, which was a failing company until the government stepped in simply because they were “too big to fail.”

            It is clear from these historical examples and the opinions of experts that big businesses are given preferential treatment to smaller companies when it comes to Corporate Welfare. Many would argue that this is a necessary evil and must be done to save the economy from destruction. It is likely though that this rhetoric is thrown out there to create fear and keep the wealth in the hands of the already wealthy. Personally, if I were President, I would not want to give preferential treatment to a company just because they are a big company. Corporate Welfare should be used to help all businesses, not just big businesses. This rarely, if ever, happens in the current system.       Read More