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The problem is the bank bailouts aren't done to benefit the poor and working class. They are done protect the wealthy, an example of socializing risks and privatizing profits.
More an example of state or crony capitalism.
LOLOLOLfuckingLOL
It’s pretty cute that Custard thinks “Capitalism works just fine, all on its own.”
The federal highway system was a huge gift to industry. Denying the role government has made in building corporate America is just completely uneducated.
Military-industrial complex subsidies primarily manifest as massive federal outlays for defense contracting, research and development (R&D), and infrastructure. With the total U.S. military budget surpassing $1 trillion, approximately half of this goes directly to private defense corporations like Lockheed Martin, RTX (Raytheon), Northrop Grumman, Boeing, and General Dynamics.1. Direct Federal Contracts and R&D SubsidiesThe largest financial backing takes the form of direct procurement and Research, Development, Test, and Evaluation (RDT&E) contracts.Procurement: Hundreds of billions are spent annually to purchase equipment ranging from aviation systems to massive maritime systems.RDT&E: The Pentagon heavily subsidizes the private development of emerging technologies before they become finalized military products.2. Infrastructure and Supply Chain SubsidiesBeyond buying finished goods, the federal government directly funds the physical infrastructure and workforce training needed by defense corporations
1. Infrastructure and Supply Chain GrantsThe federal government frequently absorbs the core capital expenditures of private contractors by directly funding their factories, shipyards, and technical training facilities.Industrial Base Funding: Sweeping pieces of legislation regularly funnel billions into privately operated defense infrastructure. For example, recent federal actions injected over $5 billion directly into subsidizing commercial shipbuilding infrastructure and advanced manufacturing training programs rather than purchasing actual ships.Workforce Development: The military heavily subsidizes private labor forces by providing multi-million dollar grants to regional entities to fund free tuition and housing for trainees, directly expanding the corporate labor pool at public expense.2. State and Local Corporate Welfare
The CHIPS and Science Act (2022): Authorized roughly $280 billion, including $39 billion in direct subsidies and billions more in investment tax credits, to bolster domestic semiconductor manufacturing and reduce reliance on foreign chipmakers. The execution of these deals is highly fluid, with the Commerce Department actively renegotiating and structuring terms.The Inflation Reduction Act (IRA) of 2022: Contains approximately $369 billion in energy and climate spending, heavily subsidizing corporations in the EV, battery manufacturing, renewable energy, and hydrogen production sectors through expanded tax credits.
To borrow from Custard’s like of thinking “That ain’t Capitalism!”
1. The Era of Expansion (19th - Early 20th Century)Railroad Land Grants: In the mid-to-late 1800s, the federal government subsidized western expansion by granting private railroad companies massive tracts of public land.Tariffs: Early American industrial policy relied heavily on tariffs to protect domestic manufacturers (like steel and textiles) from foreign competition, effectively subsidizing them by keeping consumer prices artificially high.
Auto Industry Bailouts: In 2008 and 2009, the U.S. government provided billions in emergency loans through the Automotive Industry Financing Program to keep major car manufacturers like General Motors and Chrysler from declaring bankruptcy and collapsing.Tax Code Subsidies: Standard U.S. corporate tax laws allow companies to deduct business losses on their tax returns. Companies can use Net Operating Loss (NOL) carryovers and carrybacks to offset past or future profits with current losses, reducing their tax liability.Federal Reserve Interventions: During economic downturns, the Federal Reserve has frequently stepped in to purchase corporate bonds and exchange-traded funds to stabilize credit markets and prevent corporate debt defaults.
America frequently socializes corporate losses when massive private companies or industries face failure. The government regularly absorbs these risks to prevent broader economic collapse under the premise that these entities are "too big to fail". Major historical examples of this include:
The 2023 Banking Collapses: The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve intervened during the collapses of Silicon Valley Bank and Signature Bank, protecting all uninsured corporate depositors to prevent broader systemic panic.Tax Code Provisions: On an ongoing basis, the U.S. tax code permits corporations to deduct losses from their tax bills over multi-year periods, essentially forcing the public to share the burden of bad business performance through reduced federal revenue.If you want, I can dive deeper into:How the 2008 TARP program specifically functionedThe ongoing debate over corporate welfare in the federal budgetSpecifics on business tax loss deductions
The primary banks and financial institutions bailed out in 2008 through the U.S. government's Troubled Asset Relief Program (TARP) and Federal Reserve emergency loans included:Citigroup: Received $45 billionBank of America: Received $45 billionAIG (American International Group): Received $40 billionJPMorgan Chase: Received $25 billionWells Fargo: Received $25 billion
Have to admit this would qualify as "Golden Era" material for Illini sports....
Because it was not as profitable as one of Ro Khanna's kids' investments.
If socialism is so bad, why do we keep using it to bail out Capitalism in America?
FFS dude none of those things are even socialist.
