Some extensions of the welfare state are supported by big business lobbyists because government spending on old folks saves many corporations money.
But these days self-interest trumps ideology. Many large employers would love to dump the burden of buying drugs for their retirees onto the federal government. (A study by the Congressional Budget Office determined that about one-third of Medicare recipients who now receive drug benefits from former employers would lose them if the plan were to pass.)
The article reports that GM and Ford would respectively save $150 million and $50 million per year if the Medicare drug benefit is enacted.
Companies in old industries that go bankrupt also pass pension benefit liabilities onto the taxpayers.
|Share |||By Randall Parker at 2003 August 05 01:47 PM Socialism, Capitalism|