Most of the big public policy debates in Washington these days
somehow involve homeland security. It animated the controversial
ports deal, for example, and it underscores the battle over illegal
immigration. And that's as it should be. As I write in my book,
Getting America Right, national security is the federal
government's most important obligation. What could be more critical
than that? Judging from the government's spending pattern, we have
an answer: corporate welfare.
Last year, Washington spent $53 billion on homeland security --
and $60 billion on corporate welfare. Clearly our priorities are
misplaced, and it's time to change that.
Corporate welfare comes in many flavors. The biggest such program
-- farm subsidies -- is disguised as a measure to help "the little
guy." The 2002 farm bill (misleadingly sold to Americans as the
"Farm Security Act") will cost taxpayers $180 billion over 10
years. But little of that money actually goes to the traditional
family farmer.
Two-thirds of farm subsidies go to the top 10 percent of subsidy
recipients. That means tens of millions of dollars for big
agribusinesses and millions more for such "gentlemen farmers" as
basketball star Scottie Pippen, newscaster Sam Donaldson and
television mogul Ted Turner.
At least 12 Fortune 500 companies also have pocketed farm
subsidies in recent years, including John Hancock and Caterpillar.
In addition, federal money funds critical programs such as barn
restoration and paying farmers not to grow certain crops.
Even when farm subsidies actually do go to family farms, the money
is often superfluous. The typical farm household reports a net
worth of more than $500,000 and probably doesn't need much help
from Uncle Sam. Besides, if Congress really wanted to guarantee
every farmer a set income, say $35,000 a year, it could do so for
"only" $4 billion. Instead, it spends far more than that, with most
of that simply wasteful corporate welfare.
Another place Washington could trim the welfare spending is the
"Advanced Technology Program."
Congress created this program in the 1980s to supposedly "bridge
the gap between the research lab and the marketplace." In a country
known for its innovations (the BlackBerry and the iPod, to name
just two recent examples), it's not clear why the government should
be involved in this process. After all, when a company does
research, it generally plans to bring the product it develops to
market. That's the sole reason private companies spend $150 billion
each year on R & D.
Still, the program lives on, handing out more than $150 million
per year to companies including IBM, General Electric, General
Motors, 3M and Motorola. And while that seems like a small amount
when compared with the billions Washington squanders elsewhere (the
federal government can't account for $24.5 billion it spent last
year -- it knows the money was spent, but doesn't know where it
went or what it bought), killing this program would be a
start.
Lawmakers could then move on to eliminate cotton subsidies ($264
million in 2004), peanut subsidies ($213 million in 2004), dairy
subsidies ($206 million in 2004), sugar beet subsidies ($48 million
in 2003), and all the rest. Then we'd be well on our way to
eliminating corporate welfare.
Before they decide to spend any money, lawmakers should ask
themselves whether the program they intend to spend it on would
make us safer.
Remember: Every dollar wasted on corporate welfare is a dollar
unavailable to protect our ports and secure our borders. It's bad
enough to tolerate such subsidies in peacetime, but in a time of
war it's positively immoral. Let's make sure our elected
representatives know that as they decide which projects to pay for
in the future.
Edwin
Feulner is president of The Heritage Foundation
(heritage.org), a Washington-based public policy research institute
and co-author of the new book Getting
America Right.
First Appeared in the Chicago Sun-Times