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The subsidy gives GE a competitive advantage over their competition on every contract they bid on, every hire they offer a salary to, every item they sell on th
by parfe 11y ago
The subsidy gives GE a competitive advantage over their competition on every contract they bid on, every hire they offer a salary to, every item they sell on the open market.
GE can operate below the margin a fairly competing company operates at, forcing them out of business. The government picked a winner and created losers.
- mc32 11y agoThat's pennies considering their annual CoGS ecpenses and revenue. It's not nothing, but its unlikely to figure into any pricing.
- parfe 11y agoConvenient how they managed to get a handout so large it convinced them to move their international headquarters, yet so small it doesn't negatively affect their competition.
- mc32 11y agoLong term strategy, leases, access to workforce, business climate, etc. The money isn't nothing, but its also not a lot of money considering the size. It's the equivalent of a sandwich shop selling $1,000,000 in yearly revenue worth of $8 sandwiches getting an $850 break on rent or taxes per year allowing half a penny in savings per sandwich served. Wow that really kills the competition.