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subsidy |
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Subsidy Financial assistance provided by a government to another entity, usually a business or industry. Subsidies are given to keep otherwise unprofitable ventures in business; for example, a family farm unable to compete with agribusiness may receive a subsidy from the government to maintain operations. Subsidies may also exist as a protectionist measure to make domestic goods less expensive than imports. Proponents of subsidies argue that they maintain employment in the domestic economy while critics state that they distort the market and make it less efficient. See also: Bailout. subsidy Benefits granted to persons or groups in order to encourage behavior or outcomes deemed important to society. Rent subsidies encourage construction of adequate affordable housing because the owner can be ensured of an income stream as long as the housing meets government requirements.The same subsidy encourages better consumer choices because of the availability of affordable alternatives. Tax credits to contractors for energy-efficient construction are subsidies to encourage the use of energy-efficient alternatives. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| But the evidence suggests that existing federal-aid programs are practically worthless. The Federal Highway Administration's Associate Administrator for Infrastructure, will not allow federal funds to be used to reimburse contractors for cost increases on existing federal-aid highway contracts, where such adjustment clauses were not in the original contract, according to The Associated General Contractors of America. The combination of our on-going national expansion program coupled with new changes to regulations on Federal-aid highway projects means ADS's customers and tax payers across the U. |
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