Corporate Welfare Essay, Research Paper
Welfare is a big part of tadays society and economy. The question of whether there is too much welfare or whether there is too little. For example President Clinton had pledged to end welfare as we know it while otehrs say society should only reform welfare. Welfare should be reformed greatly especially in the areas of corporate welfare, Medicaid, Food Stamps, and other funded areas which are wasting money. It is true that welfare helps keep certain companies strong and running in order to help the society and the economy. Automakers, for example, like Ford, General Motors, and Chrysler have got two tax breaks in the budget bill signed by President Clinton. In return, the three automakers have contributed to certain politic campains in excess of $300,000 in contributions. Moreover, companies such as Boeing and Lockheed Martin have had great help from corporate welfare in return for contributions. On the other hand, corporate welfare is causing much coruption among companies and politicians which is only fooling the economy. It is estimated that the federal government spent an estimated $104 billion on subsidies, giveaways and tax breaks for favored industries. Corporate welfare not only takes money and makes for an unbalanced budget but also causes areas such as school lunches, public broadcasting and poor women with children, to be cut while corporated welfare goes untouched. For example, it has been porved by Friends of the Earth and the National Taxpayers Untion Foundation that 34 corporate subsidies were “both wastedful and environmentally destructive.” In most of the western United States, corporated welfare leads to dead earth. The federal government is looking in other areas to cut the budget instead of corporate welfare. It is estimated that the government could save around $500 billion in corporate welfare spending alone over seven years which would cut the the countries deficit in two. The biggest welfare recipient according to studies is Archer Daniels Midland. According to studies these facts have been sustained:
at least 43 percent of ADM’s annual profits are from markets that would be virtually nonexistent without government subsidies or protection every $1 of profits earned by ADM’s sale of ethnol costs taxpayers $30 every $1 of profits earned by ADM’s corn sweetener operation costs consumers $10 Due to these studies congress has agreed to reconsider all of the programs that sustain ADM. As an example ADM is not the only corporation which is benefiting from corporate welfare and causing government unneccessary money. Moreover, corporate welfare is causing our nation’s natural resources to be destroyed and depleted. 80% of the nations fast-food fries are made from the Columbia River Basin Russett Burbank potato. These potatoes however need to be grown in a desert with lots of water. The water neccessary to grow these potatoes come from Grand Coulee Dam which will not run forever. Eventually, the resources used to grow these potatoes will run out. Dollars are replaced more easily than the resources which corporations kill. Yet, no other welfare is more supported than corporate welfare. For example, the Mining Law of 1872 gave U.S. citizents the right to prospect on federal land free of charge. In order to make some money the government alowed people to stake a claim if minerals are found and to buy the land for $5 an acre. The downside to this is that the land is going to be used up for free and will not be used in order to help society. Opposingly, the vst majority of land is left with polluted groundwater, unreclaimed ore pits, and 12,000 miles of ruined streams.
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