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Taxes and subsidies are two sides of the same coin. They are often used in conjunction to achieve specific policy ends. If you are pro taxes, you are pro subsi
by roymurdock 11y ago
Taxes and subsidies are two sides of the same coin.
They are often used in conjunction to achieve specific policy ends. If you are pro taxes, you are pro subsidies. Perhaps not on the specific, case-by-case basis, but overall you are arguing for free market distortion through the yin and yang of government policy.
I won't address your specific points as everyone has different opinions on policy, but no one has the data to rigorously defend their opinions.
I simply want to refute the notion that we can allow free markets to allocate all resources within the economy.
- Retric 11y agoOk we can side step the specific examples and I agree with your point. But, at the meta level I still think taxes are generally a better solution independent of policy. Taxes are much more scalable than subsidies. AKA if A is better for society than B but B is cheaper to produce then taxing B can balance things fairly easily with consumers paying society for the external costs. But, subsidizing A is an unbound cost, adds administrative overhead, and promotes consumption of A and or B. The downsides of Taxes is there often regressive, but for something like alcohol, pollution, or speeding societal costs are often independent from a persons net worth.