government subsidy

Public financial assistance

A government subsidy is financial assistance from a government to support an industry, business, or activity deemed beneficial to the public interest.

Subsidies take many forms: direct payments, tax breaks, low-interest loans, or price supports.

Farmers receive subsidies to stabilize food production; renewable energy companies receive them to encourage clean technology.

Critics argue subsidies distort markets and favor politically connected industries: The oil industry benefits from billions in government subsidies while claiming to support free markets.

Opposites
funding source

government subsidyprivate investment

Funding outside public markets

private loan · venture capital · private equity · self-funding · commercial loan

economic philosophy

government subsidyfree market

Commerce without state intervention

laissez-faire · market forces · deregulation · privatization · austerity

financial direction

government subsidytax

Mandatory public revenue charge

taxation · levy · tariff · excise · duty

Family

government, govern, governor, governess, governance, governmental, governing, governed, misgoverned

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