The Notion of Corporate Welfare - Essay Example

The term is used to describe government incentives provided to large corporations. The term originated after the state used a significant amount of money to support large corporations (Cay 67). It was created that corporations may be having financial problems that may lead to their closure. To avoid the scenario the state provides the corporation with financial support. However, the plan is always in criticism as the money would be of greater importance if it is provided to the poor.

In addition, modern-day corporate welfare policies are created to enhance the sustainability of major companies (Roger 44). For instance, agricultural subsidies in the United States are used to sustain large corporations in the industry (Roger 44). These corporations can sustain their financial burden.

The current corporation welfare strategies have been criticized. The majority of the people embrace the modification that the money could be more useful to the poor not large corporations (Fisher& Peters 89). For instance, it could be more effective if agricultural subsidies are used to support farmers rather that the major institutions in the industry.