Here you have some:
- they are expensive (higher taxes)
- they may encourage inefficiency by relying more in the subsidy money
- it is difficult to decide on who may receive a subsidy
- they can create a production surplus which may end up as waste.
- they encourage new entrants into the industry even when demand does not require these.
Costs and conquenses of providing subsidies
Costs and conquenses of providing subsidies
Subsidies may encourage continued inefficiency among producers. Workers and firms will be less productive due to the extra income they receive through subsidies.
Cost and consequences of providing the subsidies and welfare in South Africa
It is a wrong way to write subsidies.
Costs and conquenses of providing subsidies
Costs and conquenses of providing subsidies
Subsidies can stimulate economic growth by lowering production costs, encouraging investment, and making goods and services more affordable for consumers. They can also support emerging industries and protect jobs. However, disadvantages include potential market distortions, over-reliance on government support, and the risk of fostering inefficiency among producers. Additionally, subsidies can strain public budgets and lead to unequal benefits, favoring certain sectors over others.
Sugar subsidies cause farmers to grow more sugar resulting in lower prices for sugar. Lower prices for sugar results in increased consumption, resulting in obesity and diabedes.
subsidies
Subsidies may encourage continued inefficiency among producers. Workers and firms will be less productive due to the extra income they receive through subsidies.
subsidies
Cost and consequences of providing the subsidies and welfare in South Africa
Alberto Petrucci has written: 'Capital subsidies versus labour subsidies'
Cost and consequences of providing the subsidies and welfare in South Africa
subsidies
Some synonyms for the term 'subsidies' include "aid," "allowance," "fellowship," "grant," "bonus" and "scholarship." Other less-common terms for subsidies include "tribute," "alimony" and "indemnity."