Who receives subsidies? Should we give subsidies if we are a free market society? How would the lack of subsidies in our economy affect you as a consumer? as a taxpayer?
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Welcome. This is a blog dedicated to the students enrolled in the CSHS AP Economics classes. Click on the title of the article, read, and click comment.
Well I know at what point you said farmers receive subsidies. Then of course there's been alll the major bail-outs which are fundamentally the same thing as subsidies (eg. AIG, GM, and more). In the U.S. economy, as I see it, subsidies are given to companies or economic sectors that the U.S. economy is dependant on. And although GM stilll went bankrupt, simply subsidicing a company does not absolutely guarantee its success.
ReplyDeleteI certainly think that in certain situations, it is, for the most part, necessary to give subsidies, especially to farmers, yet i lack any further knowledge in the area of subsidies so I choose not to throw around too many implicit statements.
I think the lack of subsidies, though, would either create better product quality, but less efficiency and overall a trashed industry. Or maybe less franchising of businesses and less "corporations," leading to an overall more diversified industrial America. I really can't say how it would affect the taxpayer for, once again, I'm not at all sure.
Farmers do receive subsidies, and I believe at a certain point, they were granted subsidies to not grow crops. Subsidies are mainly given to those companies that are needed within the economy; the important companies.
ReplyDeleteSubsidies should not be given in a free market because it could give an unfair advantage to certain sellers.
As a consumer, a lack of subsidies would be disadvantageous and not beneficial at all. Products would cost more, because the government is not puting any money into the company, so the company will charge more. As a taxpayer, a lack of subsidies would be beneficial. Subsidies are injections of money into certain companies by the government. The government receives this money from taxpayers, so taxpayers would not have to pay as much if there was a lack of subsidies.
Subsidies is just another way that the federal government sticks its hands down the throat of the free market. Come on. If a company needs to be subsidized they are obviously doing something wrong, if they were doing things that the consumer wanted the consumer would subsidize the business by giving them their business(money). The government needs to stop rewarding companies for failing, would you reward me for failing a test Mrs. Meachum? Would you subsidize my grade to an 80% if I got a 60%? You shouldn't, just as the Government shouldn't for under achieving companies.
ReplyDeleteFarmers receive subsidies, as everyone will say and agree upon. And even though we're a free market society, we need to give subsidies to farmers, because otherwise our economy would fall apart. Farmers wouldn't be able to grow crops, or they'd grow to much, and either way food will be wasted or overpriced, and the cost of feeding your family would drive the prices of everything else up.
ReplyDeleteI think subsidies should only be given after serious meditation and intense thought. Farmers drive the world; without them we would starve, or we'd all be farmers and not the industrious country we are today. If depriving a business of a subsidy would result in serious negative events, then a subsidy would be the better option.
As a consumer, subsidies work for me. They keep my food priced reasonably and within easy access. As a taxpayer, it's another thing my money is going towards, and if it means I eat dinner tonight, I'm going to pay it. Food is inelastic; we have to eat SOMETHING or we will die. It may as well be delicious meat and agricultural products.
I agree with Stevie (I'm surprised I can say that to be honest). A government subsidy stops the market from reaching equilibrium. America should be allowed to sink or swim on it's own, as the companies in it follow suit. If you're an inefficient company, why be paid to stay afloat and do the same wrong thing repetitively? It seems to me like this is the kind of situation where corrpution comes into play. While I think it would be difficult for any lawmaker to watch a speeding car drive itself without grabbing the wheel, it needs to be done. Either that or we need to stop referring to ourselves as a free-market economy.
ReplyDelete-Erika Alfieri
So should farmers not receive subsidies because they're "failing"?
ReplyDeleteOf anything their job is a public service; farmers aren't really in it for the big bucks.
Consumers buy from farmers all the time, and it's never enough without government money.
Erika,
ReplyDeleteHahaha, you see, I am bound to be right sometimes!
Christina,
If farming is a public service why don't they just work for the Government and receive government pay checks and benefits? Well it is because it is not. And yes, if they fail they fail, It is not the Governments job to save a farmer, I know it seems crazy that the Farmer should save himself, but that is what a free-market is. How about letting people spend their hard worked money on what they want to spend it on, just a thought.
The government is giving subsidies for many products, including electric golf carts and washers for consumers. In addition to this companies have been given subsidies, including banks and car companies. We should not give subsidies in a free market economy because it is a free market. This means that there should be no governmental influences, in the market. Not giving subsidies would affect me as a consumer and a tax payer by making me pay more in taxes but receiving a few more dollars.
ReplyDeleteSen. John McCain posted on twitter...
ReplyDelete$2.5 million for a wastewater treatment plant in Moorefield, WV (population of 2,375) $1,000 subsidy of per person.
Come on! What a waste.
I'm sorry, Christina, but not a single thing you said in your first post makes any sense. Perhaps people should do a little reading or research before posting comments for other people to see. (Part 1 of 2)
ReplyDeleteGreg Mankiw: "before buying the merchandise being offered by Congress, I hope we all take a close look at the price tag"
ReplyDeleteMoshe, I think that's hardly a comment. The principle of this blog is that you comment on the subject and you get a grade for it. If you have an opinion about someone else's comment, you might want to extrapolate a little bit instead of just blatantly saying : "Christina, I'm sorry, but not a single thing you said in your first response makes any sense."
ReplyDeleteSubsidies are and have been given to farmers. Sometimes it is even necessary to pay them subsidies in order for them not to grow certain crops in hard times.
ReplyDeleteIn a free-market society all subsidies might cause is unfair advantage- competitors would be requesting subsidies left and right.
As a consumer subsidies help me to get low prices on my goods. As a taxpayer, subsidies are a pain in my rump since they force me to pay higher taxes.
As most everyone before me has answered, farmers receive subsidies. In the times of the Depression some farmers were even paid by the government to destroy their crops.
ReplyDeleteIn a free-market, subsidies should be prohibited only because they would give the company receiving them a head over everyone else in the competitive market.
For the consumer, subsidies are even encouraged. They are what allow most people to purchase their goods at reasonably low prices rather than at crazy monopolistic prices. To the taxpayer, however, the subsidies do cause higher taxes, but the consumer benefits might outweigh that factor.
RT @StevieJayCSHS Free at last free at last! The people are taking back thier government!! Great night for Conservatives and the GOP! HUGE win in VA and a 20+ point swing in NJ from Obama '08! Looks like a bad night for the DEMOCRATS, Big government, and Mr. Obama! If you believe this country is great but Marxists and Radicals are trying to take over, Stand up, and follow me!
ReplyDeleteWe need the farmers and such to keep us going. We cannot survive without food nor can we import ALL of our food from foreign countries. We need to be responsible for our own resources sometimes and cannot be at somebody else's mercy, that is why we need to keep our farmers happy and making a profit.
ReplyDelete