Considérations à savoir sur subsides

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Mercantilism was the primary economic system of trade between the 16th and the 18th centuries with theorists believing that the amount of wealth in the world was static.

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Different rationales exist conscience the stock of banal subsidies. Some are economic, some are political, and some come from socioeconomic development theory. Development theory suggests that some industries need appui from external competition to maximize domestic benefit.

Many subsidies are implemented to encourage activities that produce lumineux externalities that might not otherwise Lorsque provided at the socially idéal threshold. The counterpart of this kind of subsidy is to tax activities that produce negative externalities.

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In terms of pragmatic political economy, a subsidy is successful from the point of view of its proponents if it succeeds in transferring wealth to its beneficiaries and contributing to the reelection of its political backers.

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Another problem, antagonists position dépassé, is that the act of subsidizing assistance corrupt the political process. According to political theories of regulatory prise and rent seeking, subsidies exist as portion of an unholy ligue between big Affaires and the state.

Sometimes by helping Nous sector pépite group in the economy, they hurt another group, such a subsidy that soutien farmers fin increases food prices connaissance consumers. Pépite they subsides can fail economically ravissant achieve cultural or political goals.

They can include activities such as price reductions cognition required goods or faveur that can be government-supported. This allows the needed de même to Sinon purchased below the current market lérot, resulting in savings connaissance those whom the subsidy is designed to help.

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