Uploaded July 2020 | Updated September 2026, 1 hour ago
Whether you choose to refer to the concept as corporate welfare of corporate socialism (with other popular expressions being "socialism for the rich, capitalism for the poor" or "privatizing profits and socializing losses"), this much is certain: there is growing discontent among more and more individuals related to this fairly obvious form of preferential treatment when it comes to corporations that are considered too big to fail.
Simply put, corporate welfare revolves around them getting the best of both worlds: when times are good, they make a lot of money (the privatization of profits) and when things turn sour, they get bailed out (the socialization of losses).
One of the end results is represented by the fact that in the context of the 2020 economic crisis, the average citizen now demands a larger portion of the generosity pie. As such, to move away from a corporate socialism framework, governments and central banks are pretty much forced to embrace policy choices that have results not just when it comes to the corporate sector but also the real world.
This, however, begs the question: just how far can this increasing generosity go until inflation problems (problems pretty nobody seems to be worrying about at this point in time due to deflation being the number one concern) start surfacing?
Whether you choose to refer to the concept as corporate welfare of corporate socialism (with other popular expressions being "socialism for the rich, capitalism for the poor" or "privatizing profits and socializing losses"), this much is certain: there is growing discontent among more and more individuals related to this fairly obvious form of preferential treatment when it comes to corporations that are considered too big to fail.
Simply put, corporate welfare revolves around them getting the best of both worlds: when times are good, they make a lot of money (the privatization of profits) and when things turn sour, they get bailed out (the socialization of losses).
One of the end results is represented by the fact that in the context of the 2020 economic crisis, the average citizen now demands a larger portion of the generosity pie. As such, to move away from a corporate socialism framework, governments and central banks are pretty much forced to embrace policy choices that have results not just when it comes to the corporate sector but also the real world.
This, however, begs the question: just how far can this increasing generosity go until inflation problems (problems pretty nobody seems to be worrying about at this point in time due to deflation being the number one concern) start surfacing?
