How Corporate Welfare Corrupts Oregon

The corrupting nature of corporate welfare is the topic of this article. When a state is a strapped for money as the State of Oregon is, why are they paying corporate welfare in terms of promotional activities on behalf of industries that could pay for these things themselves?
According to Dr. Zenon X. Zygmont:

"Corporate welfare is inherently unnecessary, wasteful, and costly. It is an unnecessary expenditure because it results in businesses receiving support to engage in activities they would conduct even without such transfers. Also, because businesses often view transfers from the government as “free money,” it encourages them to engage in riskier and less profitable investments. Further, such transfers come at a cost; businesses engage in lobbying and related activities to capture the transfers, and bureaucracies must be funded to serve as pipelines for such transfers. The role of government in a free society is that of a referee, not a player; it must not politically favor one industry, or one business, over another. If Oregon legislators want to improve Oregon’s business climate they should create a consistent and common sense regulatory climate, and reduce taxes across the board. This would go a long way toward a stable and prosperous economy. Likewise, legislators should level the playing field and eliminate corporate welfare programs. Businesses can fulfill their own needs without being on the government dole."

Dr. Zenon X. Zygmont is an assistant professor of economics at Western Oregon
University, and an academic advisor to Cascade Policy Institute, a Portland,
Oregon based think tank. His paper, “Playing favorites: Corporate welfare in
Oregon,” is available at www.cascadepolicy.org, or by calling (503) 242-0900.