Welfare For The Rich Needs To End

By Amy Alkon


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Welfare For The Rich Needs To End
No, that wasn’t the word from Bernie Sanders.

It was Charles Koch talking, while surrounded by some of the wealthiest men and women in the nation, reports Eliana Johnson at NRO.

And, by the way, I sure do agree.

Koch condemned big bank bailouts and government handouts for the rich.

Doing away with crony capitalism might hurt some of the individuals in attendance, Koch said, and it would certainly hurt Koch Industries, but over the long term, it would revitalize the economy and benefit all parties. Bailing out the big banks, he said, had not only created a culture of dependency at the top, but crushed small community banks at the bottom.

“We need to start by eliminating welfare for the rich,” he said. “Physician, heal thyself.”

An example of welfare to the biggest and richest is the Ex-Im bank (aka “Boeing’s Bank”), which Veronique de Rugy has been covering for Mercatus and reason. An excerpt from de Rugy’s June 18 piece in reason:

Ex-Im is the epitome of that cronyism and has a charter that is set to expire, which is why it became such a great target. For instance, in recent years, some 60 percent of the bank’s activities have benefited 10 giant U.S. corporations, with 40 percent benefiting one company alone: Boeing. On the foreign side, the cheap loans are extended to giant state-owned companies such as Mexico’s petroleum company, Pemex, and the United Arab Emirates’ airline, Emirates. When the Ex-Im financing isn’t benefiting a state-owned firm, it is often flowing to very successful private firms with plenty of access to capital, such as the loan extended to the richest woman in Australia to finance her iron ore project at the expense of its U.S competitors.

These Ex-Im companies may enjoy the perks of cheap financing and artificially inflated profits, but it’s not fair for the 98 percent of U.S. exports generated without special treatment from the federal government. That’s especially outrageous when the program has taxpayers on the hook for $140 billion.

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