A ZeroHedge.com article published on December 20, 2024, entitled, “Top 20 Companies Benefitting from Government Subsidies” captures the billions of dollars of different types of US federal, state, and local subsidies received by each publicly-owned company from 2000-2024.
“Government subsidies take a variety of forms: tax credits, abatements, training reimbursements and direct grants.” Automotive, energy, industrial, technology, and media industries on the list were recipients with recognizable company names.
These subsidies exemplify crony capitalism, defined as “an economic system in which success in business is obtained through relationships to people in political power rather than through competition.” The Austrian School of economics defines any subsidy as government intervention in the functioning of the economy.
Summing up the list for each industry, the categories are: automotive ($24.9), energy ($23.3), industrial ($23.8), technology and media ($32.8). These are mind-numbing numbers from a business perspective when the total known federal government debt is $36 trillion in 2025. Many people are not aware of total state and local government debt. The top twenty subsidy list is below.
Boeing received nearly $16 billion in federal and state government subsidies since 2000, making it number one. Most subsidies are from the US state of Washington, with nine preferential state tax rates benefitting the aerospace industry.
Intel—a semiconductor designer and manufacturer—is number two in the subsidy contest, with $8.4 billion received since 2000. Intel’s November 26, 2024, press release stated,
The US Department of Commerce has awarded Intel up to $7.86 billion in direct funding through the US CHIPS and Science Act to advance Intel’s commercial semiconductor manufacturing and advanced packaging projects in Arizona, New Mexico, Ohio and Oregon.
Adding these two subsidy numbers would make Intel the new number one subsidy-receiver since 2000.
The Ford Motor Company is number three in the subsidy parade, at $7.7 billion. One subsidy example outside of the top twenty list is a June 2023 announcement of $9.2 billion US Department of Energy (DOE) loans to build electric vehicle battery plants. Each DOE loan to Ford follows the US Treasury interest rate, which is about half of the private market interest rate. The federal DOE loan interest rate discount Ford received is based on their speculative credit rating.
States are pouring billions of dollars into attracting these electric battery plants. “Kentucky and Tennessee are adding to the federal government’s loan by providing $2.7 billion for the three factories…” Some state officials are following the economic intervention example of their federal compatriots.
Ford lost $3 billion on electric vehicle sales in 2022, but was bailed out by sales of its popular gas-powered trucks. In 2023’s first quarter, Ford’s electric vehicle program posted losses that exceeded sales revenue. Ford is losing around $30,000 per electric vehicle produced from a June 27, 2023 announcement.
The subsidy examples described are nowhere near exhaustive and they show the subsidy scale is financially scuzzy. Each type of subsidy impact on the local, state, and regional economy is unknown and resident taxpayers contribute to this unnecessary government economic interference.
