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That's the idea yeah, the economic strategy in France is very simple: if it works then tax it, it if doesn't work then give more subsidies. That's a terrible l
by realusername 3y ago
That's the idea yeah, the economic strategy in France is very simple: if it works then tax it, it if doesn't work then give more subsidies.
That's a terrible long term strategy because the good companies are subsidizing failing ones, destroying the reward function of the market.
The second terrible side effect to this policy is that the subsidies system is too complex for small companies to handle so the small companies have an increased failure rate compared to a normal economy.