2 ms·
why 3%? to overcome inflation? and why on everything instead of grossly disadvantaged industries? i haven't spent much time thinking about such details, so curi
by clairity 7y ago
why 3%? to overcome inflation? and why on everything instead of grossly disadvantaged industries? i haven't spent much time thinking about such details, so curious about the rationale.
- whatshisface 7y agogrossly disadvantaged industries = industries labeled as grossly disadvantaged = industries that managed to talk politicians in to giving them a huge advantage
- breischl 7y agoNot the person you're asking, but I could see doing it to "internalize" the risk of rare events like what we're seeing right now. Basically it applies an incentive towards regionalization over globalization, that can make the system more resilient to distant events.
- Retric 7y agoIt’s extremely expensive to grow bananas’s in Canada, so the correct response is to import them not add a huge subsidy. The point is to encourage domestic production, but not to the point of stupidity. Further, unlike a direct subsidy it’s adding tax revenue.