What does subsidies mean?

A subsidy is a payment made by the government to a private business or individual to stimulate economic activity. Without subsidies, some companies would go out of business, while others would use less efficient methods and remain in business. In many developing countries, governments provide subsidies to farmers so they can afford to buy fertilizers, pesticides, and irrigation systems. These subsidies encourage farmers to cultivate crops that can compete with those grown in rich countries.

What does subsidize mean?

A subsidy is when the government provides financial support for a product or service, usually by lowering the price or providing tax breaks. When a government offers financial support for an industry, it can benefit the population as a whole by growing the economy and increasing employment.

What does subsidies mean in English?

In the United States, hundreds of billions of dollars in production subsidies are handed out each year to different agricultural and energy industries. These subsidies, also called direct payments, were created to help farmers, ranchers, and businesses that are struggling to break even.

What does the word subsidies mean in Spanish?

The term subsidy is usually used for government-funded programs aimed at supporting an economic activity or a cause. In this case, the investor receives a government subsidy that reduces the cost by which the economic activity is produced.

What is the meaning of the word subsidies?

A subsidy is a form of financial support provided by the government to a specific business or industry to stimulate economic activity. A subsidy can be direct, such as a payment made to a private company in order to support a specific activity, or indirect, such as a tax break that allows a company to pay less than the actual cost of a product or service.