Corporate welfare is a pejorative term, first coined by Ralph Nader in 1956, describing a government's bestowal of grants and/or tax breaks on corporations or other "special favorable treatment" from the government^**. Usually these actions are seen to be at the expense of the citizens, although they might be seen as at the expense of other corporations as well. The term is meant to remind one of welfare payments to the poor, and perhaps imply that corporations are much less deserving than the poor (though it is also important to remember that all forms of government subsidizing fit into the general category of welfare.) Some object to the term "corporate welfare" on the grounds that the term plays on negative stereotypes about welfare payments to poor people, and may suggest that the poor are as undeserving of government "handouts" as corporations are. Corporate welfare is a symptom of regulatory capture.

Corporate welfare is applied in a number of different situations. A classic example is the granting of the use of broadcasting rights to TV stations at nominal fees, when other companies are willing to pay substantially more to use these frequencies. Increasingly common with the rise of globalization is offering incentives to locate in an area. For instance a company intending to build a manufacturing plant, or even a sports stadium, will frequently declare interest in two areas, and then let their respective governments attempt to "outbid" each other with promises of tax breaks, free land, and infrastructure developments. Critics charge that this skews the free market, giving a competitive advantage to large corporations, and shifts tax burdens away from these large companies to smaller ones and to individuals.

Another common example often derided as "corporate welfare" is when a large company is nearing collapse, and is given substantial breaks or financial support by the government to keep it in business. While free market theory views the bankruptcy of companies as essential to the process, the specter of lost jobs and unhappy voters often means the government will step in to help a faltering behemoth, to an extent that would not happen with a small business. For example, the airline industry has survived ongoing losses through government aid.

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So all we had to do to get rid of Tony Abbott was to enact a lame, corporate-welfare, Emissions Trading Scheme?
captain_beef (Jason) Thu, 26 Nov 2009 05:28:04 -0000
So all we had to do to get rid of Tony Abbott was to enact a lame, corporate-welfare, Emissions Trading Scheme?
Noted Corporate Welfare Recipient Not Welcome At White House Dinner #p2 #tcot http://viigo.im/1BBj
dominionpundit (Dominion Pundit) Wed, 25 Nov 2009 17:59:45 -0000
Noted Corporate Welfare Recipient Not Welcome At White House Dinner #p2 #tcot http://viigo.im/1BBj
Noted Corporate Welfare Recipient Not Welcome At White House Dinner http://bit.ly/6Ao1bB via @dealbreaker
johnnyA99 (johnnyA99) Wed, 25 Nov 2009 17:15:10 -0000
Noted Corporate Welfare Recipient Not Welcome At White House Dinner http://bit.ly/6Ao1bB via @dealbreaker
Noted Corporate Welfare Recipient Not Welcome At White House Dinner http://bit.ly/4N3hnZ
dealbreaker (dealbreaker) Wed, 25 Nov 2009 14:54:37 -0000
Noted Corporate Welfare Recipient Not Welcome At White House Dinner http://bit.ly/4N3hnZ
Dealbreaker : Noted Corporate Welfare Recipient Not Welcome At White House Dinner: Not hungry anywayDozens of promi... http://bit.ly/66WNq2
jedalus (RSS Favourites) Wed, 25 Nov 2009 14:50:05 -0000
Dealbreaker : Noted Corporate Welfare Recipient Not Welcome At White House Dinner: Not hungry anywayDozens of promi... http://bit.ly/66WNq2
EDITORIAL: Corporate Welfare: Keeping Small Business Small http://tinyurl.com/yffqvoc
nellboybnafb (Nell Boyd) Wed, 25 Nov 2009 07:21:34 -0000
EDITORIAL: Corporate Welfare: Keeping Small Business Small http://tinyurl.com/yffqvoc

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