Subsidies

Categories: Econ, Financial Theory

Money given by the government to a specific industry or to people in a specific industry.

The government cash—paid for by tax dollars—is meant to help specific industries keep prices low so that they can compete on the world market. For example, in the U.S., farm subsidies are given to farmers and to people buying farm lands to keep certain crops inexpensive.

And yes, there's a lot of controversy surrounding subsidies. Some folks support 'em, while others claim that they unfairly affect prices or give developed countries a big advantage over less developed countries that might not have the cash to help their industries.

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