Boeing, Goldman Sachs, Lawbreakers, Get Subsidies
|June 24, 2014||Posted by Staff under Corruption, Subsidies & Waste & Public Debt|
This 2014 excerpt of Dirt Diggers Digest, May 29, is by Phil Mattera.
More than half of corporate miscreants (146 of 269, or 54 percent) have received state and local subsidies. These include cases in which the awards went to the firm’s parent or a “sibling” firm. The total value of the awards comes to more than $25 billion.
A large portion of that total ($13 billion) comes from a single company — Boeing, which is not only the largest recipient of subsidies among corporate miscreants but is also the largest recipient among all firms. Boeing made the Justice Department list by virtue of a 2006 non-prosecution agreement under which it paid $615 million to settle criminal and civil charges that it improperly used competitors’ information to procure contracts for launch services worth billions of dollars from the U.S. Air Force and NASA.
Not all the subsidies came after that case was announced. In the period since 2006, Boeing has received “only” about $9.8 billion.
The other biggest subsidy recipients on the list are as follows:
- Fiat (parent of Chrysler): $2.1 billion
- Royal Dutch Shell (parent of Shell Nigeria): $2.0 billion
- Toyota: $1.1 billion
- Google: $751 million
- JPMorgan Chase: $653 million
Altogether, there are 26 parents on the DOJ list that have received $100 million or more in subsidies. As with Boeing’s $13 billion figure, the amounts for many of the companies include subsidies received before as well as after their settlement.
Ed. Notes: Soon’s you get tired of such corruption, let’s put a stop to it. Quit letting politicians subsidize anybody. And quit fining the corporation but instead punish the CEOs and managers making the decisions.
If not subsidizing, government could save so much public revenue it could climb out of the red. The biggest “subsidy” is letting corporations keep “rents” (society’s payments for land, resources, etc). Once government recovers those socially-generated values, it could not just end counterproductive taxes but even pay citizens a dividend!
If corporations can’t profit when not getting taxed on creating value and when people are endowed handsomely in order to become customers, then the corporation deserves to go broke.