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Did I say subsidize supply?
by andromeduck 4y ago
Did I say subsidize supply?
- bumby 4y agoDid I use the word subsidy?
- andromeduck 4y agoYou basically did.
- bumby 4y agoIt’s interesting (and telling) that is what you inferred from that. You can replace corn with a non-subsidized commodity/service and the principle still holds. Any mechanism with the explicit intent to increase supply is tantamount to a subsidy. Tax breaks are an informal “subsidy” to spur business, with a cost incurred by other societal goals. Decreasing environmental regulations are an informal subsidy to increase energy production with externalities borne by others. Etc etc. The broader point is that defining the utility function that captures these societal costs/benefits is complex and your false dichotomy misses all that nuance.