How many subsidies?

A blogger who is opposed to subsidies because they distort prices and who believes subsidies should be given to consumers rather than producers cannot ignore this link.

It features a graph showing many ways in which governments provide assistance to businesses..

No way can we think of our economy as one based on a competitive market.

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One Response

  1. True subsidies are a distortion and cost the taxpayer money.

    But there are many hidden subsidies which are worse. The major one is tarriff protection. They are bad, yet the invidious result is that government raises revenue, and yet the losers are spread among consumers with a small price rise.

    Other protection include regulations, such as health regulations or import restrictions, and import quotas. All bad, theough appear good.

    Talking about tariffs, did you know that if your country was the only free trade country in the world, with absolutely no tariffs and import restrictions, and all the othe countries had high tariffs, quotas and restrictions: Guess what? Your free trade country would gain at the expense of all the other protectionist countries. Resources would pass from then to you.

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