Question

Read the article "The Empire of the Pigs," summarize the reading and also answer the following: questions: 1. What is corporate welfare? 2. How did it work in this case? 3. What were the social and economic consequences? 4. Is corporate welfare justified? Under what circumstances?

Answer 1

The empire of the pigs highly describes the government spending policy and corporate welfare. This article highlights the high burden of liabilities due to the government spending on the welfare of the corporates.

Corporate welfare can be described as special treatments arranged, grants made, the business made free from tax and the various other facilities provided to the corporate companies.

Corporate welfare works in this issue through the subsidies offered to the Seaboard by the local government and the federal government to better the condition of the counties.

The taxpayers were negatively affected and during the same time, workers were abused and the big environmental damage is also caused.

Corporate welfare is not justified if a company is certainly a big company and can stand on its own financially. Only a local or state government can intervene, when the financial conditions are bad and the company is about to get bankrupt. Hence, to rejuvenate a company, corporate welfare is apt and proper.