Economy
June 9, 2015
What are Subsidies?
Written by Sandy Williams
According to Investopedia, a subsidy is “a benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.”
The example accompanying the definition is agriculture: the U.S. commonly subsidizes farmers to supplement income, manage supply, and influence the cost and supply of agricultural commodities.
