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That can happen at any level. A good example are the many "safety net" programs (often shared between levels of government) which add public funds to private paychecks allowing the "job creator" to pay only a portion of their employees' income - the rest being added (or made unnecessary) by the government. It's far less expensive (i.e. much more profitable) for a "job creator" to pay a bit more taxes to give some (15%?) of their employees "safety net" subsidies than to pay all of one's employees enough for that not to be deemed necessary.
Yep. Walmart and some other companies did that on a large scale.
I try to look at it from a pragmatic standpoint. Scaremongering with "socialism" and "central planning" strawmen seems disingenuous to me. I don't think anyone beyond a few freaks at the fringes wants anything but a mixed economy. The makeup of the mix is what we are constantly tweaking.