Difference between revisions of "Subsidy"
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| − | A '''subsidy''' is a payment or tax break by government to certain businesses to help them survive or to give them a competitive advantage. Sometimes the subsidy can be direct, as in the case of cash payments to farmers, and sometimes it can be indirect, as in the case of building a transcontinental railroad. | + | A '''subsidy''' is a payment or [[tax]] break by [[government]] to certain businesses to help them survive or to give them a competitive advantage. Sometimes the subsidy can be direct, as in the case of cash payments to farmers, and sometimes it can be indirect, as in the case of building a transcontinental railroad. |
Subsidies can also be given out by individuals or non-governmental institutions, but this is more commonly referred to as charity. | Subsidies can also be given out by individuals or non-governmental institutions, but this is more commonly referred to as charity. | ||
[[category:economics]] | [[category:economics]] | ||
Revision as of 23:40, November 2, 2007
A subsidy is a payment or tax break by government to certain businesses to help them survive or to give them a competitive advantage. Sometimes the subsidy can be direct, as in the case of cash payments to farmers, and sometimes it can be indirect, as in the case of building a transcontinental railroad.
Subsidies can also be given out by individuals or non-governmental institutions, but this is more commonly referred to as charity.