Politicians in Memphis gave Swedish furniture giant IKEA tax breaks to come to the city and create jobs. IKEA created fewer jobs than promised and drove existing small furniture stores–who still had to pay taxes–into the ground.
“Where’s our tax break?” business owner Louis Caddell, of King’s Furniture, asked. Then he went out of business. He couldn’t compete with a giant like IKEA that got special breaks. Does this sound familiar in other parts of the country? It seems government handouts repeatedly end up in the pockets of giant corporations, a sort of corporate socialism, says John Stossell.
Surprisingly, the policy has caught the attention of uber-liberal PBS, who is airing Johan Norberg’s new documentary, Corporate Welfare: Where’s the Outrage. Here’s Stossel’s TV-sized version of it.