Corporate welfare is an insidious and damaging economic strategy which is used by governments at all levels and pretty much with every party. Whether through direct subsidies, preferential tax treatments or selective regulations, governments try to pick economic winners among the business community and invariably end up creating losers.
Franco Terrazzano of the CTF and I discuss historical examples of failed corporate welfare along with current ones. From the city of Calgary’s $100 million slush fund to Premier Kenney’s petrochemical initiatives.
As governments seek ways to restart the economy that they shut down, the lure of trying to use corporate welfare in order to do it appears to be overwhelming for them. Punishing successful enterprises in order to shore up the unviable ones won’t help anybody (aside from the crony capitalists with hands extended).
It was a great chat and we covered a lot of ground in 40 minutes. Give it a listen below.