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What Is a Subsidy?

By Jeremy BowmanUpdated Jun 2, 2025 at 1:17 PM

Key Points

  • Subsidies are government payments aiding those unable to afford essentials or to encourage behaviors.
  • Subsidies can impact markets; they support sectors like agriculture and semiconductor manufacturing.
  • Pros include economic value and safety nets; cons include market distortion and reliance issues.

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