The Odium of Corporate Welfare

We are All Socialists Now

Disgraced president, Richard M Nixon made his famous comment (as he removed the gold backing for the US currency) that we were all Keynsians now, so gold had done its time. Thirty years on, we, living as exiles in Athens, find that the West is so pervasively socialistic in its world-view that it would have been more true (although less politically acceptable) for Nixon to state that we were all socialists now, rather than Keynsians.

Nowhere does socialism appear more egregious and offensive than when businesses hold out their hand for government subsidy and support. Unable to make their way in the world of commerce, persuading sufficient numbers to purchase their goods or services, they turn to the government (that is, the taxpayer) for money. "People owe us a living" is the hidden mantra--unspoken even to themselves--yet nonetheless at the core of their rotten being.

It is during times of economic downturn, when markets and business contract, that corporate socialism is most likely to rear its ugly head. We have seen the Big Three automakers in the US beg before Congress for taxpayer money. They have not been able to make a go of it during the boom times: now the people definitely need to support them in the face of more nimble less costly international competition--since they are a national icon. They are part of what it means to be American. They are owed a living.

In the NZ Herald today we have an absolute cracker of the genre of corporate welfare. This time, however, it is not pleading and begging--it takes the form of outrage that the government is not doing more to support a particular industry.

The government has cancelled a planned national conference of health workers which was going to cost taxpayers over $100,000. Not a bad move, one would think, in a time when government spending has to be contained and reduced, since the national fiscal deficit is growing by the day. But no--the "conference industry" through its spokesman, the chief executive of Conventions and Incentives NZ, Alan Trotter, said the Government was sending "completely the wrong message".

The corporate conference industry apparently is a $1bn a year industry. Apparently in times of economic contraction the government should be supporting this industry, not destroying it. Why, one might inquire? Well, as with all socialistic thinking, special financial support is justified in this case because of the greater good to all. Apparently, industry conferences help everyone in business, keeping them at the cutting edge, up to the mark, efficient, competitive--so, in hard times, the conference industry ought to be a clear worthy winner in the rush for public financial support. Really? Yes, really.

OK, so let's explore this little gem. So, when economic times are difficult the government should use tax payer's money to support industry by becoming the uber-consumer if goods and services from worthy industries.

How about the food industry--intrinsic to New Zealand's agricultural based economy? Mussel farming is struggling. Maybe the Cabinet should pass an executive order that all state employees are to be provided a mussel a day to keep the receivers away. And let's not forget Fonterra, still smarting over its business meltdown in China, falling global food prices, and rising protectionism in its export markets. How about reinstituting the state funded "glass of milk a day" which used to be provided for every school child in the 1950's. That would support Fonterra, its shareholders, the dairy farmers, and would greatly improve the diets of children in South Auckland at the same time.

Or think about the auto industry. Every state employee earning a six figure salary could be given a car as part of their salary package. That would provide huge support to the auto industry. Imagine the stimulus in the provinces as local headmasters and DHB executives bought state funded cars (presumably eco-friendly diesel BMW's) from their local dealers.

Mr Alan Trotter has shamed himself and his industry. We have a simple message for you, dear sir. We, the people of New Zealand, do not owe you and your members a living. If you and your members cannot maintain your industry in harder economic times it is a clear indicator that your service is of little real value. When times are more difficult the market place prioritises its spending and focuses upon essentials. If your service is regarded as a nice-to-have rather than a must-have then this may be an opportune time to make a graceful exit from the market place. Go get a real, sustainable job.

To protest that you and your members should be allowed to slurp at the public trough is sadly not regarded as unethical in our madding modern world--but it remains fundamentally and definitively immoral. You and your association are clearly children of your time. Maybe you should appoint Richard M. Nixon as your posthumous patron. You deserve each other and you are clearly kindred spirits.