David Sirota says that in at least some high-profile cases, President Obama was quite right to say they didn’t build that:
Remember when President Obama was lambasted for saying “you didn’t build that”? Turns out he was right, at least when it comes to lots of stuff built by the world’s wealthiest corporations. That’s the takeaway from this week’s new study of 25,000 major taxpayer subsidy deals over the last two decades.
Titled “Subsidizing the Corporate One Percent,” the report from the taxpayer watchdog group Good Jobs First shows that the world’s largest companies aren’t models of self-sufficiency and unbridled capitalism. To the contrary, they’re propped up by billions of dollars in welfare payments from state and local governments.
Such subsidies might be a bit more defensible if they were being doled out in a way that promoted upstart entrepreneurialism. But as the study also shows, a full “three-quarters of all the economic development dollars awarded and disclosed by state and local governments have gone to just 965 large corporations” — not to the small businesses and start-ups that politicians so often pretend to care about.
Of course, anyone who thinks major corporations as a whole are “models of self-sufficiency and unbridled capitalism” doesn’t spend much time in the real world. Far too many spend as much time trying to use their market position to exclude smaller competitors and lobbying for regulations that will prevent new entrants into their respective fields of business. As with anything, when you subsidize certain kinds of activity, you’ll inevitably get more of it — and governments compete with one another to offer sweet deals to corporations in terms of tax breaks, direct subsidies and other inducements to set up or expand their operations in a given state or country.
