SUBSIDIESIn order to achieve a free economy in which government victimizes no one for the benefit of any other, we oppose all government subsidies to business, labor, education, agriculture, science, broadcasting, the arts, sports, or any other special interest. In particular, we condemn any effort to forge an alliance between government and business under the guise of "reindustrialization" or "industrial policy." The unrestricted competition of the free market is the best way to foster prosperity. We therefore oppose any resumption of the Reconstruction Finance Corporation, or any similar plan that would force the taxpayer to subsidize or sustain any enterprise.
We call for the abolition of the Federal Financing Bank, the most important national agency subsidizing special interests with government loans. We also oppose all government guarantees of so-called private loans. Such guarantees transfer resources to special interests as effectively as actual government expenditures and, at the national level, exceed direct government loans in total amount. Taxpayers must never bear the cost of default upon government-guaranteed loans. All national, state, and local government agencies whose primary function is to guarantee loans, including the Federal Housing Administration, the Rural Electrification Administration, and the Small Business Administration, should be abolished or privatized.
The loans of government-sponsored enterprises, even when not guaranteed by the government, constitute another form of subsidy. All such enterprises -- the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Farm Credit Administration, and the Student Loan Marketing Association -- must either be abolished or completely privatized.
Relief or exemption from taxation or from any other involuntary government intervention, however, should not be considered a subsidy.