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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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| He warned that the growth in ethanol production could have several ramifications, including pushing corn prices to record levels in coming years, reducing government subsidies and potentially raising food prices. But the report drew attention to the fact that some major problems remain with China, including the country's inadequate enforcement of intellectual property rights (IPR) protection, unfair government subsidies to industries and other industrial policies that act to promote Chinese content over imports in manufacturing and services. The days are long gone when generous government subsidies allowed public colleges to keep tuition low. |
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