"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Sunday, November 4, 2012

Pepsi Cola is taking Corporate Welfare

Your Tax Dollars at Work
Democrats give $1.3 million to help Pepsi build a yogurt factory 
  • No Free Market  -  Feds give taxpayer money to "help" one company to get a competitive advantage over other companies in the same business.

The Democrat controlled Commerce and Agriculture Departments recently awarded $1.3 million in federal aid to a local New York county to help start a new Greek yogurt factory in New York. No, the money didn't go to help a mom-and-pop shop or a small business.

Instead, one of the biggest beneficiaries was soft-drink giant PepsiCo, a multi-billion dollar American giant with plenty of its own money to fund its entrance into the yogurt market dominated today by brands like Dannon and Yoplait.

The aid package to the county economic development group included $1.1 million in incentives, as well $200,000 to help build a road to its new factory. The first part of construction on the Muller Quaker Dairy plant is scheduled to be completed in 2013.

Constitutional Federalist Senator Rand Paul on Corporate Welfare
Corporate Welfare takes many forms.

For its generosity that helps a corporate giant, the Commerce and Agriculture Departments win this week's Golden Hammer, a distinction given by the Washington Guardian  to the worst examples of government waste fraud and abuse.

The Commerce Department gave a $1 million Economic Development Administration grant to the Genesee Valley Agri-Business Park in western New York to help improve water infrastructure for several of the businesses. The money was so that Genesee County "can accommodate the growing needs of new and current business tenants."

Everyone is sucking on
the Public Teat.

But with the government facing a fiscal cliff, it begs the question: why didn't the companies just pay for it themselves?

"Pepsi’s a $66 billion company, they definitely have the money to make those improvements," said John Hart, spokesman for Oklahoma Senator Tom Coburn.

Coburn highlighted the grants to develop the agriculture park as part of his annual "Wastebook" that identifies problematic spending from the federal government.

The aid package was supported by many New York politicians, including Democrat Sen. Charles Schumer.

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