Legal Definitions - corporate welfare

Corporate welfare refers to the financial assistance provided by the government to large companies in the form of subsidies. This assistance is given to help these companies prosper and grow.

• A government provides a tax break to a largecorporation to encourage them to build a new factory in their city.
• A government provides a grant to a company to develop a new technology that will benefit the economy.

These examples illustrate how the government provides financial assistance to large companies to help them succeed. This assistance is often controversial because some people believe that it is unfair to give money to large corporations when there are individuals and small businesses that also need help.