Corporate welfare was introduced by Franklin Roosevelt in 1933 after he became president. This was referred to as corporative federalism which was expanding national authority over commerce, taxation and the economy. Cooperative federalism recognized the sharing of responsibilities and financing by all levels of government. At the beginning of the great depression, the national government increasingly cooperated with states and localities to provide jobs and social welfare to develop the nation’s infrastructure and promote economic growth. Corporate welfare is a pejorative term popularized by consumer advocate Ralph Nader in 1956. This refers to the system of direct government subsidies, grants, tax breaks, tax loopholes, discounted insurance, debt revocations, bailouts and special favorable treatment for corporations.
The need for corporate welfare came about in the early in 1930s during the great depression. This prompted the national government to spend huge amounts of money to alleviate the ravages of the great depression and to get the US economic machinery back into gear. The concept of corporate welfare has steadily been captured by the right which has sought to draw attention to the parallels between social and corporate welfare, both argued to distort markets and create government waste, inefficiency and corruption. Corporate culture has benefited many economies from bailouts of banks and helping bankrupt companies by injecting more money to improve the economy. The essence of corporate culture has changed over the years in many countries to help during recessions and depressions in the economy. Having such an asset base is important in any economy for enhancement of economic growth. This helps to truly examine the country and the GDP.
This policy has been effective by investing into the economy. Corporate welfare in the recent years has eased the transitions between different phases of capitalist development, for example, by helping to manage the fallout from the closure of old industries and assisting with the birth and development of new ones. Corporate welfare has also helped to protect industries from other risks, most notably foreign competition. The policy on corporate welfare can encourage the production and/or sale of certain good or services, increase payments. The corporate culture has been seen over the years through the many bailouts to be an asset for major corporate.
As the president, putting forward the finance bill and enhancing the corporate welfare bill by tightening and putting up conditions for corporations. This may include putting pressure on senior level management through policies that touch on the ethical standards management. Corporate welfare is important and should be upheld in the highest order this will include a well established plan that consists of bailout for major corporate undergoing a crisis. The bill will focus on the existence and improvement of the economy as it will finance and help execute economic growth. The government will also use the funds in corporate welfare to build on the innovations that require extra funding. Corporate welfare will not only help the economic growth but will in every sense ensure the future of the country’s economic growth.
Works cited
Ann O'M Bowman, Richard C. Kearney. State and Local Government: The Essentials. Cengage learning, 2011.
Chapman, Roger. Culture Wars: An Encyclopedia of Issues, Viewpoints, and Voices, Volume 1. M.E sharpe, 2010.
Farnsworth, Dr Kevin. Social versus Corporate Welfare: Competing Needs and Interests within the Welfare State. Palgrave Macmillan, 2012.
