The phrase “Corporate Welfare Bums” was coined by Canadian NDP Leader David Lewis in 1972.
J. P. Morgan just got a gift of $225 million from the local government to locate an office in Jersey City. Corporate welfare. Somewhere in Jersey City a single mom with two kids is thinking, I should ask the government for some money if I agree to locate my ass at the McDonald’s drive-thru window.
J.P. Morgan had profits of $18 billion last year. The government had evidence that J. P. Morgan was complicit with the Bernie Madoff ponzi scheme: while claiming the trust of investors and partners they did nothing to ensure that their money was being handled in a legal and responsible manner. To forestall more serious criminal proceedings they agreed to pay out about $2 billion in fines. They would have you believe that they didn’t really do anything wrong, and the agreement with the government allows them to claim that they didn’t really do anything wrong– they just like to hand over $2 billion dollars to the government occasionally, because it makes them feel good.
If you were a bank robber or a burglar, wouldn’t you wish that you had the option of paying a large fine every time you were threated with imprisonment? J. P. Morgan’s President and CEO and Board Members can phone almost any politician and arrange lunch. You can’t. So pick up your mop and get back to work.