Kia Franklin

NYT Looks at Corporate Welfare

This New York Times article on a small Oregon town takes a look at more than just the economic lives of two local entrepreneurs; it also explores the ways in which our tax dollars are being misused while wealthy executives benefit from corporate subsidies and secret perks.

The small city of Bandon, Oregon used to have a thriving fishing and timber economy until the industries collapsed in the early 1980s, leaving many people bogged down by the lack of work and a need to provide for their families. Businessman Mike Keiser’s new golf resort, Bandon Dunes, provided hope and jobs for the local economy. But the story is too complex for a fairy tale ending—the few remaining fishing and timber business owners, people like Scott Cook, see the change as being about “guys with money trying to make more money.”

How? According to this video, Scott Cook may be forced to sell his land at a fraction of its value in order to make room for development projects that will primarily help the resort and its guests. The resort’s expansion has prompted the expansion of parking and airport capacity as well:

Airline passengers and lottery players are paying for a $31 million airport expansion to serve the 5,000 business jets that arrive each year, filled almost entirely with golfers. Many of them are executives of publicly traded companies flying at a small fraction of the real cost of their trips; taxpayers and shareholders bear nearly all of these costs.

While some corporate subsidies are designed as incentives to encourage business growth in floundering economies, many subsidies are better described by Cook’s characterization—rich guys trying to get richer. This story is an interesting look at the complexity of issues surrounding the role of government in our lives.

Posted at 12:01 PM, Jul 03, 2007 in Permalink | Comments (2) | TrackBack (0)