On June 1, 2012, David Cay Johnston, a a Pulitzer Prize-winning journalist and author, and a 13-year veteran of The New York Times writes on Reuters.com:
“Nationwide state and local subsidies for corporations totaled more than $70 billion in 2010, as calculated by Professor Kenneth Thomasof the University of Missouri-St. Louis
“In a country of 311 million, that’s $900 taken on average from each family of four in 2010. There are no official figures, but this one is likely conservative because — as documented by Thomas, this column and Good Jobs First, a nonprofit taxpayer watchdog organization funded by Ford, Surdna and other major foundations — these upward redistributions of wealth keep increasing.
“Having taxpayers pay nearly all of a new investment is becoming common. General Electric, for example, is getting Ohio taxpayers to cover 92 percent of a $126 million project
“That’s how corporate socialism works — taxpayers donate capital, while the owners keep the profits.
“Congel, along with GE and others, should rely on the market to finance projects. If a project is sound, the market will finance it and, if not, why should taxpayers donate?”
The issue to be addressed is “government loans” and “government loan guarantees.” What is necessary is a stipulation clause in every such government subsidy contract or agreement involving tax-payer money support that the investment be structured with broadened private, individual ownership by the employees of the companies receiving the support.
http://blogs.reuters.com/david-cay-johnston/2012/06/01/how-corporate-socialism-destroys/
