Economic Opportunity

States strike a blow against corporate welfare

May 16, 2016

In an op-ed for the Washington Examiner, Alison Acosta Fraser, managing director of research and policy at the Charles Koch Institute, uses Florida’s recent win against cronyism, the denial of $250 million in funding for a state enterprise fund, to illustrate how cronyism goes beyond “enterprise funds” to affect consumers and entrepreneurs through subsidies and regulations. As she writes:

“Stifling the competition through subsidies or regulations raises costs for consumers. But it also means that existing businesses don’t have to work as hard to control their own costs, maintain or improve quality, or innovate with new products or services. No matter how you look at it, corporate welfare creates more losses for consumers, businesses and entrepreneurs than benefits for the privileged few.”

Read the full op-ed in The Washington Examiner