Government’s corporate welfare-fest

Government’s corporate welfare-fest

Corporate Welfare-fest is Just Wrong

Author
By Canadian Taxpayers Federation


Jennifer put in 12-hour days for months in order to get her company off the ground.

She spent hours researching products, moving boxes, painting the store walls and setting up her venture. Jennifer focused on details to the “nth degree” and missed several family events prior to flipping the “come in, we’re open” sign for the first time.



Once open for business, the ‘fun’ didn’t end. For years, Jennifer was always the first one there in the morning and the last one to leave at night. It took ages before she could afford to hire a manager to watch over things. When a machine broke down on the weekend or a cash register had trouble…yes, Jennifer was the one who got the call to come in and handle the situation.

The life of a small business owner is hardly as glamorous as some think. Most small business owners will tell you it’s anything but a cake-walk. They do it because their business is their baby. Just like real children, they want their businesses to grow and flourish.

So how do you think business owners like Jennifer feel when they open the paper and read that the government has given their tax dollars to a competitor to help it get off the ground?

Betrayed? Hurt? Angry? Take your pick.

Alternatively, how do you think struggling families are supposed to feel? They know that if a business receives a handout and then makes a profit, the business will get to keep it. And if the business flops…well, the politicians and those tax dollars will be long gone.

The government always claims these handouts – also known as “corporate welfare” – are good for “creating jobs.” Yet the argument falls flat once logic is applied.

If the government had instead simply left the money in peoples’ pockets and let them decide how to spend it, jobs would still be “created.” If you had a few more dollars to spend at a local business, it would help them hire another employee. Who knows, it might help keep them from going under too.

Moreover, if business taxes were lower, then business owners like Jennifer would have more money for hiring staff.

Unfortunately, Manitoba’s government doesn’t get this simple concept. Lately they’ve been handing out your tax dollars to businesses in a manner that might make Santa Claus blush.

Recently, the government committed to handing over millions to SkipTheDishes, the Price Group of Companies, Canadian Tire and MTS. With each cheque came a politician, a photo-op and a promise of “creating jobs.”

To be clear, it’s generally not the fault of companies that apply for funding from government programs – who wouldn’t want “free” money?

The solution is for governments (the federal government too) to stop offering up your money to businesses in the first place. You should be the one who gets to choose which businesses to invest in or buy products from.

Speaking of making decisions, are you going to choose to speak out about this problem or sit back and keep on funding the government’s corporate welfare-fest?