StudentShare solutions
Triangle menu

Government as a Social Tool or Business Partner - Essay Example

Not dowloaded yet

Extract of sample
Government as a Social Tool or Business Partner

It should be noted that when the governments prioritizes corporate subsidies and allocate less fund for welfare payments, it just emphasizes that corporations are much needy than the public. This is even more strongly felt now that the country is operating on a tight budget. Theory then states that the private sector should be solely responsible for the provision of social programs. This paper opts to offer an insight to this issue by looking at the economic argument for and against corporate welfare.
It is irrefutable that corporate welfare is one of the most debated social and economic issues. The term "corporate welfare" is coined by Ralph Nader in 1956 in order to describe the "benefits conferred on corporations as compared to any corporate payment, or goods or services provided, to the government." With this definition, Nader looks beyond the benefits conferred and costs incurred by a particular program by looking at the government's costs and benefits. For example, if a program involves the government giving more to private companies than it gets back, then it is considered as corporate welfare. ...
Corporate welfare can take the form of direct grants to business, programs that provide research and other services for industries, and programs that provide subsidized loans or insurance to business. A good example is the Ohio Loan Law in 1837 which "required the State to give tax revenues to private canal, turnpike, and railroad corporations while permitting them also to charge tolls" (Nader 1999). Others include the Market Access Program for the agricultural department, the Advanced Technology Program, and Technology Reinvestment Program (Stansel n.d.). These moves emphasize these companies importance to the local government.
The common argument for corporate welfare is more economic than social. It should be noted that tax perks like tax holidays and tax breaks are commonly used by governments in order to encourage the inflow of foreign direct investment. This is more apparent in developing countries where the economy is largely dependent on foreign players. The main argument for this is that "economy is dependent on business stability and that corporate development is directly linked to job growth" (Perryman 1996). When tax breaks are offered, companies can operate more efficiently by cutting down on operational costs. Tax breaks are also potent ways to attract more companies thereby increasing the locality's production and income. The presence of corporate subsidies also ensures the stability of the business sector. When the government provides corporate welfare, it in fact, works in ensuring that companies continue to operate efficiently. It should be noted that corporate welfare includes provision of funds, projects, and programs which aids business organizations in research and development, marketing, and in their production efforts. ...Show more


The importance of industry in the economic performance of a country has long been accepted. The business sector fosters economic growth to the creation of goods and services which are included in national production. Through their operation, business organizations become the answer to the problem of unemployment through job creation…
Author : emmie80
Government as a Social Tool or Business Partner essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Government as a Social Tool or Business Partner"
with a personal 20% discount.
Grab the best paper

Related Essays

Tennessee's Partner
Tennessee's Partner. The short story written by Bret Harte focused on a man, given a name by townsfolk at Sandy Barn as Tennessee’s Partner, apart from Tennessee, whose real name was also forgotten in oblivion. The story was told by an unknown narrator, who seemed to be a spectator and an observer of Tennessee and his partner’s trial under the jurisdiction of Judge Lynch.
1 pages (250 words) Essay
The PESTLE and SWOT tools. Different Models for human resource business partner
The PESTEL and SWOT tools also play a significant role at detailing how societal and technological elements are detailed within the strengths, weaknesses, opportunities and threats premises.
5 pages (1250 words) Essay
How U.S. Government and regulatory bodies can manage business cycles
The business cycle therefore consists of periods of economic booms as well as periods of economic recession or decline. The measurement for the business cycle is often done by the government through the measure of the Gross Domestic Product (GDP) of a particular nation.
9 pages (2250 words) Essay
Business , Government and Society
This issue is the most significant issue among business people and country economies as a whole. I will use a recent article that I came across last week by Paula Dwyer dated 20 October 2011, on the issue of the World Bank ranking U.S Regulatory Burden on businesses very Low.
5 pages (1250 words) Essay
Case Study ( Social Work)
Margaret is 41 years of age and is married to Cyril who is 47. Robert and Caroline are their children. Margaret is working as a care worker for an agency involved with offering care services for physical and mentally retarded individuals. On the other hand, Cyril is employed with a firm providing stationery as well as office equipments as an office manager.
6 pages (1500 words) Essay
Australian government business relations
The role that interest groups play in Australian society is to encourage the administration (usually specific sections of government, such as a particular area or a legislative group) to pursue the strategies preferred by the affiliates of interest groups.
6 pages (1500 words) Essay
It was partly to avoid according political parties a crucial role in process of electing the President of America that the founding fathers had devised the system of electoral college (Kimberling, 1992). It was thought, albeit wrongly, that checks such as separation of powers
3 pages (750 words) Essay
XXX Company and Their Social Media Tool
Coca-Cola is ranked as the world’s most valuable brand with an estimated value by Interbrand at $70 billion. This figure is about thrice the physical assets of the company which is at $24.5 billion. The Coca-Cola Company has created an irrefutable brand by being able to
2 pages (500 words) Essay
International Business
In general, expanding the business of SABIC in China is a promising business opportunity because of the ready market and cheap labour. However, the strong control of the Chinese government may serve as a hindrance in terms of maximizing the potential
16 pages (4000 words) Essay
Government regulation of business
Indeed several debates and discussions have gone on in the public on the effects of government regulation of businesses and whether or not these regulations should be expanded. Macaray (2013) argues that there is the
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation