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ok, thought you were arguing against taxes for subsidies. My own argument against subsidizing is simply the information problem. While a tax can add informatio
by CuriousSkeptic 7y ago
ok, thought you were arguing against taxes for subsidies.
My own argument against subsidizing is simply the information problem. While a tax can add information to the market (this externality is expensive) a subsidy must be someones best guess at what should be done, which is most likely wrong. And as you point ultimately based on a distorted market.
I guess a public dividend would be better, less distorting. And it would offset some of increased costs.