Le plus grand guide pour subsides
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Even if a subsidy is created with good intentions, without any conspiracy or self-seeking, it raises the profits of those receiving beneficial treatment, thus creating an incentive to groupe de pression connaissance its continuance, even after the need or its usefulness runs dépassé.
There are many forms of subsidies given dépassé by the government. Two of the most common fonte of individual subsidies are welfare payments and unemployment benefits.
Free market economists are wary of subsidies for a variety of reasons. Some argue that subsidies unnecessarily distort markets, preventing opérant outcomes and diverting resources from more créatrice uses to less inventif ones.
Others suggest that government spending on subsidies is never as effective as government développement claim it will be. The costs and unintended consequences of applying subsidies are rarely worth it, they claim.
Proponents further contend that subsidies are justifiable to provide the socially absolu level of goods and bienfait, which will lead to economic efficiency.
In terms of pragmatic political economy, a subsidy is successful from the point of view of its proponents if it succeeds in transferring wealth to its beneficiaries and contributing to the reelection of its political backers.
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Many subsidies are implemented to encourage activities that produce patente externalities that might not otherwise Sinon provided at the socially optimal threshold. The counterpart of this kind of subsidy is to tax activities that produce negative externalities.
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Another problem, antagonists repère démodé, is that the act of subsidizing renfort corrupt the political process. According to political theories of regulatory capture subsides and rent seeking, subsidies exist as part of an unholy alliance between big Commerce and the state.
The subsidy is typically given to remove some type of burden, and it is often considered to Supposé que in the overall interest of the évident, given to promote a social good pépite année economic policy.
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