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In what way are they so different? Both increase prices for the the consumer it’s just they end up having to pay for the subsidy indirectly through taxes and su
by wqaatwt 2y ago
In what way are they so different? Both increase prices for the the consumer it’s just they end up having to pay for the subsidy indirectly through taxes and such instead of having to pay a higher price. From the sellers perspective as long as subsidies are only available for domestic producers they are even more similar to tariffs since they reduce the competitiveness of imported products.
- dragonwriter 2y ago> In what way are they so different? Subsidies give money to selected market participants. Tariffs take money from selected market participants. They are, exactly, opposites. They are similar in that they are government interventions in the marketplace, which under simplistic ideal-market assumptions have net costs which must be born somewhere, but at that level every possible government action is "the same thing". > Both increase prices for the the consumer it’s just they end up having to pay for the subsidy indirectly through taxes and such instead of having to pay a higher price. No, they don't. "The consumer", "current taxpayers", and "future taxpayers" are different-but-overlapping groups of people.