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Not really. In fact the subsidies you're talking about usually don't even benefit the group they're purported to target. For example, take the gasoline subsid
by quanticle 16y ago
Not really. In fact the subsidies you're talking about usually don't even benefit the group they're purported to target.
For example, take the gasoline subsidies in Iran. The group the subsidy purportedly helps is the poor. Yet, if you look at the demographic and vehicle usage data, the middle class and rich have more cars and drive more, hence claiming most of the benefit from the subsidy. If the government of Iran really wanted to help ameliorate the cost of fuel for their poor, they'd hand out coupons for free gasoline/diesel directly to the poor.
This also applies to American farm subsidies. The only reason they're in place is because politicians claim to be protecting "family farmers". Yet, if you look at the statistics, family farms haven't been the primary form of American agriculture for almost three generations now. The vast majority of the subsidy goes to helping corporate farms, simply because the vast majority of all farms in America are owned by corporations. If the government really wanted to protect family farmers it would simply write them a check for the amount of the subsidy every year.
No, I'm with the parent. These subsidies do nothing but distort the market in favor of entities that don't need the help in the first place. Let them go.