Should they? The short answer is No! It's not in their job description and they have proved they fail in this endeavor with our tax dollars. The money given to companies becomes inflationary with a cause and effect of people not being able to buy a home today.
Welfare for Intel
The Biden administration has awarded Intel Corporation approximately $7.865 billion in funding through the CHIPS and Science Act. This funding supports Intel's semiconductor manufacturing projects across several states, including Arizona, New Mexico, Ohio, and Oregon.
Initially, the administration proposed up to $8.5 billion in direct funding for Intel and an additional $11 billion in loans announced earlier in 2024. However, the final amount was reduced due to Intel's receipt of a $3 billion military contract for semiconductor production, which affected the total federal support it could receive under the CHIPS Act.
In response, Pat Gelsinger, CEO, has concentrated on cost-cutting, leaving the revenue side of the equation blank. This included the layoff of 15,000 employees, or about 15% of its total employees. Without the effort of achieving additional revenue, Gelsinger lost a staggering $16.6 billion in the most recent quarter and had a 60% stock decline.
The board of directors (BOD) presented him with the option to resign or be dismissed. He resigned effective 12/1/2024 with a total severance package estimated to be between $7M and $10 million. It's an educational plan on how to fail and make millions, then get a welfare check from the administration paid for by taxpayers. This was a welfare check, not a loan.
This is not a one-time event from our current and former administrations.
Failures bankrolled by taxpayers
In almost all cases CEO's severance packages were generous. What follows is a few failed companies that burned through taxpayer money.
- Paycheck Protection Program (PPP) - Recipients: Between $228 and $509 million.
- General Motors (GM) - $51 million.
- Chrysler - $12.5 million.
- Consilient Technologies (a Canadian firm) Estimated millions of dollars.
- Solyndra - $535 million and months later went bankrupt but not before the CEO received a lucrative severance package.
- Abound Solar - $400 million.
- Fisker Automotive - $529 million (electric vehicle went bankrupt)
- Beacon Power - $43 million (bankrupt and awarded bonus to executives shortly before collapse)
- Calisolar - $275 million.
- SpectraWatt - $(Green energy failed)
Considerations:
Should these practices be part of the Department of Government Efficiency (DOGE) review?
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