Posts Tagged ‘corporate welfare’

Soren Dayton

Bailing out British Booze: Charlie Rangel, Max Baucus, and Diageo

by Soren Dayton

The recent ruling of the House Ethics committee against Charlie Rangel has attracted a tremendous amount of attention and has put substantial pressure on House Democrats, especially Nancy Pelosi. The Atlantic’s Marc Ambinder even reported one Democratic strategist claiming that it “loses us the House.” The basics of the story are that Rangel and his staff failed to disclose a series of facts about corporate sponsored trips about Caribbean policy.

However, there’s another Caribbean scandal that could burn Democrats. In February, Pro Publica’s Marcus Stern reported that Congress and the Virgin Islands will give British alcohol conglomerate Diageo a $3b subsidy if they shift production from Puerto Rico to the US Virgin Islands. Previously, I had written about this issue, including Rangel’s threats against the Puerto Rican health system.

But now an ad, pictured here, is running in Montana asking Senate Finance Committee Chair Max Baucus why he is putting up with this. That’s turning up the heat a little.

Another rum producer told the Billings Gazette that the subsidy “is so large it’s twice the cost of production.”  That is, if Diageo spends $100 making rum in the Virgin Islands, they get $200 from the federal government. Then Diageo gets to sell the rum too! Diageo’s 2008 operating profit was £2.2 billion and 2009 sales were $20 billion.

Now, I understand — disagree but understand — US taxpayers giving struggling American farmers a subsidy to make ethanol. (rum is also ethanol) I don’t understand why US taxpayers are giving billions to an already highly profitable, publicly traded British booze company.

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Posted Mar 5th 2010 at 1:49 pm in Congress, Pork Report | 58 Comments

Chris Moody

Michael Moore Fails to Call Out Keith Olbermann’s Hypocrisy

by Chris Moody

Michael Moore discussed his new film on MSNBC’s Countdown with Keith Olbermann last week, which excoriates the 2008 financial bailouts, corporate welfare and various other flaws in a system in which the government gives favor to corporations that can afford lobbyists in Washington DC. Moore also calls capitalism “evil,” even when you strip away all the sweetheart deals with the government.

While his initial frustration with crony capitalism may be justified, while on Olbermann’s show, Moore completely failed to mention that General Electric, the company that keeps Olbermann on the air, received billions in bailout money last year. He also neglected to point out that Olbermann received a  $3.5 million pay raise around the same time that taxpayers paid to keep General Electric afloat. (Olbermann regularly scolds corporate employees who receive bonuses from bailed out companies.)

Despite calls to put his money where his mouth is and return his own bonus, Olbermann has remained silent. And while Moore is usually so quick to attack anyone benefiting from government-backed corporate profits,  he didn’t even mention his host’s own hypocrisy.

You see, to guys like Moore and Olbermann, it’s perfectly okay to make millions from taxpayers and capitalism, so long as it’s their bank account getting filled with the cash.

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Posted Sep 28th 2009 at 6:30 am in Congress, Culture, Media Criticism | 42 Comments