Thursday, May 27, 2010

Government Subsidies

A government subsidy is when the government provides financial assistance to an industry in order for the industry to not decline. They keep the free market going and encourage industries to continue doing what they are doing; however, they are controversial because developing countries do not have the opportunity to make money from us. We have enough of our own that we do not need to buy from other countries. Subsidies are good because they keep a more stable price on crops. They also are bad because they also create a unhealthy choices for consumers. Cane sugar being replaced with cheap corn syrup makes high-sugar foods less expensive.

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