Posted by Jonathan Adler:
The New Corporate Welfare Queens:
http://volokh.com/archives/archive_2007_10_21-2007_10_27.shtml#1193145437
The last Republican Congress justly earned a reputation for wasteful
spending, particularly when it came to corporate welfare. Yet it
appears the current Congress may do them one better. The last Congress
spent over $90 billion per year on various subsidy programs,
[1]according to the Cato Institute. Yet, as a [2]W$J editorial
reports, the current Congress appears set to break the $100 billion
mark.
The handouts for the rich that have a good chance of passing
include the most expensive farm bill ever; a rise in the mortgage
limits on loans that can be securitized by Fannie Mae and Freddie
Mac; some $2 billion in loan guarantees to ethanol producers; and
expansions in flood and terrorism insurance to benefit home
builders, mortgage banks, and real estate developers.
Perhaps, the Journal suggests, this helps explain recent trends in
corporate campaign contributions.
If you want to know how good liberals can tolerate such largesse
for the rich, keep in mind that in Washington quids often come with
a quo. The latest FEC fundraising reports indicate that industry
lobbyists have shifted their allegiance from Republicans and are
now funneling cash to Democrats they expect to hold their majority.
Roll Call newspaper, which covers Congress, reports that in the
first half of 2007 business lobbyists gave "all or most of their
cash to Democratic candidates and party committees."
References
1. http://www.cato.org/pub_display.php?pub_id=8230
2.
http://online.wsj.com/article/SB119309729802267740.html?mod=opinion_main_review_and_outlooks
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