"We're headed toward a two-tiered society — a society that's destroying opportunities for the disadvantaged and creating welfare for the rich," Koch said. "Misguided policies are creating a permanent underclass, crippling our economy and corrupting the business community," he said, "present company excepted of course."
Koch said clearing those obstacles would require getting business leaders to recognize that accepting "corporate welfare" — which he defined as subsidies and special preferences for business — is "suicide long term."
"Short term, taking the principled path (is) going to cause some companies some problems, as it will Koch industries," said Koch, who runs his business empire with his brother, David Koch. "But long term it will allow business people to continue to own and run their businesses."
He singled out "big banks" as bad actors who have accepted handouts, including "massive bailouts" and taking "virtually free money from the Fed." To maintain the status quo, the banks "Make big political contributions," he said.
"This destructive cycle goes on and on," he said.