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Question asked on Musing.io by alaisguineasis

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· @alaisguineasis ·
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properties (23)
authoralaisguineasis
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vote details (4)
@karamyog ·
$0.23
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properties (23)
authorkaramyog
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json_metadata"{"app":"musing/1.1","appTags":["Gambling","Growh"],"appCategory":"Gambling","appTitle":"What is \"Subsidy\"Is it a good Economic Policy to drive Economic Growth?","appBody":"<p>subsidy is a financial aid or discount given to people who need to stay competitive or be able to afford goods they otherwise won't be able to. It is a good thing, but i can't say that generally.&nbsp;</p>\n<p>so India is an importer of oil and natural gas. Most cooking in Indian homes is done by LPG, and transport is road. Now, GDP per capita being low and also due to high wealth disparity, there is large section of society that will not be able to afford fuel. so the government has to subsidize these goods for the benefit of everyone else.&nbsp;</p>\n<p>ON a larger scale, the farming sector may see a lot of subsidies, specially in Europe or even emerging economies to make produce competitive on a global scale.&nbsp;</p>\n<p>And developing countries like india give subsidies for land acquisition, power etc, to incentivize infrastructure development so that the end tax (for example toll on roads) can be lower for developers to have a decent IRR.</p>\n<p>Problem with subsidy is that it ends up in the hands of the big players, meaning a larger proportion goes into the hands of big players, when they do not really need it. and this wasted subsidy could have gone for developing more roads and railways that the country needs. Overall, i still think subsidies are good, till the country has developed fully.</p>","appDepth":2,"appParentPermlink":"p3jh3tysq","appParentAuthor":"alaisguineasis","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}"
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vote details (5)
@naijauser ·
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properties (23)
authornaijauser
permlinkf3wxhezsq
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json_metadata"{"app":"musing/1.1","appTags":["Gambling","Growh"],"appCategory":"Gambling","appTitle":"What is \"Subsidy\"Is it a good Economic Policy to drive Economic Growth?","appBody":"<p>Subsidy are monies paid by government to traders who deal with essential commodities in order to ensure that the price of such commodity does not go above a certain price.&nbsp;</p>\n<p>Sounds like a really good idea but it isn't the ideal way businesses should be run. Payment of subsidy by government means that the government is involved in whatever is being traded and has significant control on its price. &nbsp;That's dangerous as the government can effectively manipulate prices for its nefarious purposes. Also, the government should really focus on more pressing issues than petty trading.</p>\n<p>Instead of subsidies, sectors should be deregulated and the market should be allowed to set its price with trading. Government should only be present as an overseeing authority to prevent foul play and and monopoly while ensuring a level playing ground for all.</p>","appDepth":2,"appParentPermlink":"p3jh3tysq","appParentAuthor":"alaisguineasis","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}"
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vote details (5)
@naijauser ·
$0.22
Question answered on Musing.io
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properties (23)
authornaijauser
permlinkfkc8h4yaq
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json_metadata"{"app":"musing/1.1","appTags":["Gambling","Growh"],"appCategory":"Gambling","appTitle":"What is \"Subsidy\"Is it a good Economic Policy to drive Economic Growth?","appBody":"<p>&nbsp;Subsidy are monies paid by government to traders who deal with essential commodities in order to ensure that the price of such commodity does not go above a certain price.&nbsp;</p>\n<p>Sounds like a really good idea but it isn't the ideal way businesses should be run. Payment of subsidy by government means that the government is involved in whatever is being traded and has significant control on its price. &nbsp;That's dangerous as the government can effectively manipulate prices for its nefarious purposes. Also, the government should really focus on more pressing issues than petty trading.</p>\n<p>Instead of subsidies, sectors should be deregulated and the market should be allowed to set its price with trading. Government should only be present as an overseeing authority to prevent foul play and and monopoly while ensuring a level playing ground for all.</p>","appDepth":2,"appParentPermlink":"p3jh3tysq","appParentAuthor":"alaisguineasis","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}"
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vote details (4)
@nonechangeles ·
$0.65
Question answered on Musing.io
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properties (23)
authornonechangeles
permlinkpkgct2zaq
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json_metadata"{"app":"musing/1.1","appTags":["Gambling","Growh"],"appCategory":"Gambling","appTitle":"What is \"Subsidy\"Is it a good Economic Policy to drive Economic Growth?","appBody":"<p>The subsidy is simply a financial aid that a person or entity normally receives from the government. And I've always come to think that it's not such a good way to boost a country's economic growth, or at least not with bad government. Well, in my country the government focuses only on companies or entities that matter to them or that are in their favor.</p>\n<p>The good thing about subsidies is that what it seeks is for the State to assume part of the costs incurred by disadvantaged income earners, allowing them to improve their living conditions and leaving some room for the distribution of their income in other basic activities.</p>\n<p>The bad thing is that for political and lively reasons, the beneficiaries of state subsidies have been companies or families with high incomes that have used things for industrial purposes or luxury consumption with something that is subsidized, which has harmed the most vulnerable, making the policy of subsidies is far from fulfilling its initial objective of reducing inequality and distorting the purpose of the subsidy as an element of equilibrium for those who have less. Spending in this way, in my opinion, money that can be used in other things for the country.</p>","appDepth":2,"appParentPermlink":"p3jh3tysq","appParentAuthor":"alaisguineasis","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}"
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vote details (4)