Wednesday, May 26, 2010

Subsidies

A government subsidy is is a form of financial assistance paid to a business or economic sector. There are many forms of subsidies and they are made to prevent the decline of industry and an increase in product prices. Subsidies, however, are dangerous to a free market. This is because only cheap, unhealthy food is being subsidised, the government sometimes subsidises the wrong industries, and large businesses get richer as small businesses get smaller.

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