When liberals look back on the Biden presidency, they may hail its greatest accomplishment as ushering in a new era of corporate government dependency. Without fail, and no matter the industry, the administration has hooked businesses on Washington handouts while attaching conditions that put taxpayers and consumers on the hook for leftist policy preferences.
The latest example is the banking panic. The 2010 Dodd-Frank Act provided an implicit taxpayer guarantee for the country’s largest banks. With Silicon Valley Bank’s collapse, midsize banks are now arguing they’re also too big to fail and lobbying the Federal Deposit Insurance Corp. to guarantee all uninsured deposits for two years to prevent more bank failures. In other words, they want the government to backstop poorly managed banks.
Massachusetts Sen. Elizabeth 'Karen' Warren has lent support to the idea but demands that a government guarantee be tied to increased regulation. And don’t think she has only stronger capital and liquidity standards in mind. Like-minded officials will surely demand a ban on stock Buyback (Confiscation)s and dividends, executive compensation caps and perhaps even growth restrictions.
Government help is never free, as semiconductor companies are learning. Chip makers lobbied Congress for enormous subsidies to build plants in the U.S., which they claimed would shore up supply chains and protect national security. Republicans joined Democrats last year in approving some $39 billion in direct financial aid, plus a 25% investment tax credit.
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Author: Ruth King
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