Subsidies for consumers rather than producers

People writing for and editing a magazine named The Economist should know that government subsidies to manufacturers are evil in that they distort prices, cause inefficiencies in production and are unfair in that they help a few people and not others.  Yet in this article this magazine appears to be saying subsidies are to be encouraged.

Governments give out subsidies to protect jobs or to encourage firms to locate and provide jobs in their areas.

Surely it would be better to give subsidies to consumers rather than producers.  Then prices would not be distorted and the market economy would operate efficiently and according to the values of all people.

Also subsidies to consumers rather than producers could be organized so that we could meet a collective responsibility to ensure all people have the opportunity for minimum standard of living.

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2 Responses

  1. You could have a mix to the subsidies so that they are provided at the “check-out” which would allow consumers a guaranteed price break and manufacturers the knowledge that they can produce with tighter margins and maintain compatitive in their local market as opposed to exporting jobs

  2. I liked your article. I think we have to restructure our monetary system so no one needs subsides. We have to take control of the value we place on money. Our present system is antiquated and was corrupt from its onset. A new economic exchange tally (NEXT) is a proposed scientific approach to place value on goods and services, which would benefit society and individuals, who want to excel. At present, a select few whose business it is to create debt and income disparity are in control of the global economy simply because of shady bookkeeping tactics, which go back hundreds of years.

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