What are the benefits and disadvantages to domestic industries in the long run? To international customers? Who would benefit and would lose if all price subsidies were eliminated?
2007-03-20 03:59:15 · 2 answers · asked by Angela L 1 in Politics & Government ➔ Other - Politics & Government
The reason politicians most often give is to "save jobs". Also, they want to "even the playing field".
It doesn't really work. Sugar subsidies cause us to pay higher than most of the world for sugar. Therefore, some dude in Louisiana gets to keep his job, but there is less work at the docks for imported sugar to be off-loaded. More candy is manufactured elsewhere, because candy makers can get sugar cheaper.
Consumers would benefit if subsidies and tariffs were eliminated.
2007-03-20 04:09:24 · answer #1 · answered by desotobrave 6 · 0⤊ 0⤋
Price subsidies have no place in a free market. That would go with tarrifs as well.
If a business can succeed, fine. If it fails, that is fine also. The government should keep its nose out of such matters.
2007-03-20 11:10:18 · answer #2 · answered by cappi 3 · 0⤊ 0⤋