Why do we pay subsidies to large corporations who already make billions a year?

Answers:1   |   LastUpdateAt:2012-07-31 03:46:03  

Question
Charles
Asked at 2012-07-25 10:53:02
Everyone needs a little help from time to time, while we give billions to those we already have billions less for those who have nothing. An example is compaired subsidies for welfare. We give from 15 to 35 billion a year to the big oil alone, according to the year ( that does not include all the other subsidies) , and spent 20 billion on welfare and unemployment (a few bad apples, but most deserve people fighting . ). Should not we not only cover the export tax , and charge the same rates as the countries we charge for trade? Or better yet maybe we should charge an import tariff on all goods produced outside the United States to be the same price than it would occur within the United States , is it possible ?
Answer1Kim RogersAnswered at 2012-07-31 03:46:03
Stanley, who said -

"Better yet, maybe we should charge a tariff on imports of all goods produced outside the United States to be the same price than it would occur within the United States, is it possible?"

Take a look at some history. Read about the Smoot-Hawley Tariff Act of June 1930 raised U.S. tariffs to historically high levels. At first, the idea was to help American agriculture, but in the end everyone wanted to be "protected" by import tariffs. Finally, the bill raised tariffs in all sectors of the economy by raising tariff levels, even above the already high rates that were established by the 1922 Fordney-McCumber Act. It was one of the most protectionist tariffs in American history. It was thought to be a good thing, a good plan.

Passage of the Smoot-Hawley Tariff Act did not help end the Great Depression and, in fact, caused more suffering. This provoked a storm of foreign retaliatory measures. This and other policies has contributed to a drastic decline in international trade. For example, U.S. imports from Europe declined from a peak of 1929 of $ 1,334 million to just $ 390 million in 1932, while U.S. exports to Europe fell from $ 2,341 million in 1929 to U.S. $ 784 million in 1932 . In the end, world trade declined by about 66% between 1929 and 1934. In monetary terms less, the Smoot-Hawley fostered mistrust among nations leading to less cooperation, either in political or economic. Be careful what you wish.

PS Do a little research on their numbers. You say we spend 20 billion on welfare, you may be surprised that in the fiscal 2006 federal budget for Medicaid alone was $ 186 million in FY 2011 Medicaid budget is now 297 billion . These figures do not include spending on food stamps or unemployment compensation.
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