The Realpolitik Behind State Business Subsidies: A Closer Look at Favoritism and Lobbying
The Realpolitik of State Business Subsidies
People ought to recognize that the benefits of corporate welfare go to politicians and big businesses, not to the public. If they did, politicians would be more likely to reject requests for favors.
The Biden administration recently announced $8.5 billion in subsidies to build Intel’s new semiconductor plants. It sounds like a terrific deal, as subsidies often do if you only listen to what politicians say when they are writing big checks to big companies.
Elected officials don’t come up with a lot of original ideas. There are many people who pitch them things, though. Each governor has a line out the door of people who want to present their case.
- Subsidies are about showing that the lawmaker is doing something about jobs, which is different from improving economic performance.
- Elected officials usually just talk about jobs to explain why their favors are important.
The Impact of Corporate Welfare
The truth behind state business subsidies sheds light on the realpolitik of favoritism and lobbying, revealing how the system benefits certain groups at the expense of the public. Understanding the dynamics of corporate welfare can help individuals make informed decisions and advocate for fair policies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.