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Govt subsidies are (in theory) an investment; you invest money in X so that you can make more money (or value) from Y. In that sense, for example, there's a tr
by Jare 14y ago
Govt subsidies are (in theory) an investment; you invest money in X so that you can make more money (or value) from Y.
In that sense, for example, there's a train of thought that if creating VFX in the USA becomes untenable then its move to other countries may drag money with it, then know how, then creative talent, then innovation, then production, then the entire industry and then it associated power for cultural dominance.
The entire sequence can be debated and argued and nitpicked to death (and I don't know enough about it to even try), but the underlying idea is valid.
- talmand 14y agoThey are in theory an investment, more often they turn into huge wastes of money and cripple the industry they are supposed to help.
- ef4 14y agoEven the underlying idea (essentially mercantilism) is questionable. While it can clearly benefit certain special interests (hence its popularity), it simply cannot benefit a whole society on net. Rather than repeat the whole argument, I'll just cite Adam Smith (a guy who was much more moderate than often portrayed by modern partisans), who showed in no uncertain terms that subsidies and tariffs make a nation poorer.