Is anyone out there as outraged as I am that municipal, state, and the federal government are "giving" our taxes away to people to start up businesses or to expand. Haven't the government(s) and these corporate welfare recipients ever heard of banks? If anyone can guess what form of government this is, I'll give you the highest possible score.
2006-08-28 12:38:14 · 3 answers · asked by rlw 3 in Social Science ➔ Economics
Where do you get this nonsense?
The federal government (through the Small Business Administration) guarantees up to 70% of the value of loans made by banks to businesses that are otherwise unable to find financing. What's so bad about that and how is it morally different from Earned Income Tax Credit or Medicaid? All are foms of income redistribution from the more privileged to the less privileged.
Economic development grants (administred by the Department of Commerce), in contrast, go to state and local governments, not to businesses. Grants to state and local governments are the most effective measure of fiscal expansion, second only to extension of unemployment insurance; this is the money that actually gets spent quickly and has the greatest impact on consumer and business spending. Again, what's so bad about it and how is it different from, say, U.S. Postal Service that charges the same rate for delivering a letter from Manhattan to Brooklyn and from North Bend, WA, to Fort Meade, FL? Both are forms of wealth transfer from more developed areas to less developed areas...
Also, while you are in the outrage mode, maybe you should rant about Fanny Mae and Sally Mae, too...
2006-08-29 07:02:47 · answer #1 · answered by NC 7 · 0⤊ 0⤋
Our economic device may be greater useful served by utilising taking borrowing powers far off from government. Do you already know that we pay over $4 hundred billion a twelve months in simple terms on interest money? government rules are the main reason for our economic issues. Freddie Mac and Fannie would have created yet another $250 billion in debt according to twelve months. What area of government spending do no longer you already know? upload up all the billionaires and millionaires interior the international and that they do no longer even come on the brink of including as much as a million trillionaire.
2016-10-01 00:42:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Hellllloooo
You just discovered this? It has probably been going on since the 70's and it is just getting worse and worse every decade
2006-08-28 12:49:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋