42 votes

Why do farms need subsidies?

Suppose I live in a country where I can grow enough grain to feed my people. There will be a certain cost to grow this grain. Now somewhere else, there's another country where they can grow a lot of ...
  • 1,704
39 votes

Why do farms need subsidies?

Incorrect assumption. Farms don't need subsidies to make them viable. There are already plenty of farms that would be viable today without subsidies, and if subsidies would disappear only a few farms ...
  • 5,309
37 votes

Why is Germany subsidizing the cost of electricity for everyone rather than only the poorest households?

If you subsided based on income or other factors that means you need additional overhead in order to determine who is eligible. In addition it does not prevent people who don't need the assistance ...
  • 12k
26 votes
Accepted

Why are sugar subsidies so prevalent in spite of their apparent issues?

Why do sugar subsidies and tariffs exist? The classic answer is that sugar producers organize to increase their profitability at the expense of the general public. The increase in profits is highly ...
  • 10.9k
23 votes
Accepted

Are there any developed countries where the government doesn't spend money on sports, theaters, museums and other forms of entertainment?

No. There are several reasons for this (some are more applicable than others to specific industry or country): First, on nation-state and international level, entertainment/sports is a tool of soft ...
  • 90.2k
23 votes

Why do many governments incentivize / subsidize (personal) home ownership?

Different reasoning in different societies. Among them: House ownership is far from the only government subsidy affecting necessities. In germany, there is are reduced VAT rate for food, rent paid by ...
  • 94.2k
22 votes

Why do many governments incentivize / subsidize (personal) home ownership?

In the US, it simply crept in. When the federal income tax on businesses and individuals was created in 1913, it was only natural to treat interest payments paid by businesses on loans to those ...
  • 11.8k
21 votes
Accepted

Why don't countries pay exponentially increasing amounts of money for every new child in the family?

The starting assumption is not necessarily true. France for example has special rules for "familles nombreuses", which kick in on the 3rd child. Ce dernier est réservé exclusivement aux ...
20 votes

Why do many governments incentivize / subsidize (personal) home ownership?

Whenever a question of the form "Why do governments do this?" we need to "round up the usual suspects." They think it will extend their time in power or increase their control or ...
  • 1,036
19 votes

Why do many governments incentivize / subsidize (personal) home ownership?

Other answers have addressed the economic and political aspects of why a government may incentivize homeownership. However, there are sociological reasons as well. These stem from the idea that one of ...
  • 1,184
15 votes
Accepted

Why are so many countries subsidizing the electrical vehicle industry?

There isn't one reason that applies to all the countries that give incentives for buying electric vehicles, rather it appears that there are three buckets for reasoning on this, of which countries ...
  • 10.4k
14 votes
Accepted

Why did Rand Paul vote for tobacco subsidies?

As far as I can tell, Paul's never talked about why, but it's not hard to figure out the reason. Kentucky's the #2 tobacco growing state in the nation. He's simply trying to get money for farmers ...
  • 3,644
13 votes
Accepted

Are there any major countries without agricultural subsidies?

New Zealand comes close. They eliminated almost all their farm subsidies in the 1980s. New Zealand is a developed nation with population just under 5 million. New Zealand is a country of about 4.6 ...
  • 10.9k
12 votes
Accepted

Why does the EU invest so much in biodiesel if it has a very low return on investment as a fuel?

It still has a positive ROI, so that doesn't seem like a fair reason to abandon it. Just looking at the ROI, there should be no reason to use nuclear or natural gas, as hydro and coal have a far ...
  • 34.6k
12 votes

Why is Germany subsidizing the cost of electricity for everyone rather than only the poorest households?

The policy is probably targeting also people substantially above the median of both income and equity, and on purpose. The subsidies are not only meant to prevent people from freezing or going hungry; ...
10 votes

Why do farms need subsidies?

Your comment: My train of thought is that its a form of protectionism, preventing exposure to cheaper imports by making it artificially financially viable. Is pretty much spot on ...why is it ...
  • 691
9 votes

Why are sugar subsidies so prevalent in spite of their apparent issues?

You actually largely answer your own question-- [...] thus leading to some sort of spiral (keep or increase subsidies to compensate for subsidies within other countries)." Sugar subsidies are ...
  • 2,445
9 votes

Are there any major countries without agricultural subsidies?

The reason most major nations subsidize agriculture: food is the most strategic resource of all. Let there be a shortage of food, and the populace becomes very agitated. Hunger pushes people to do ...
  • 10.2k
8 votes

Are there any developed countries where the government doesn't spend money on sports, theaters, museums and other forms of entertainment?

Short answer : No. Simple explanation: Developed country simply treat arts and sports as the same category of any pure science project. Policies are enacted to encourage participants in such fields ...
  • 1,119
8 votes

Why are so many countries subsidizing the electrical vehicle industry?

While there is some discussion about how environmentally beneficial current electric cars are. There is some quite strong political support for EVs this is a product of the level of awareness of the ...
  • 3,156
8 votes
Accepted

What can the U.S. do against the EU subsidizing its tech industry?

EU drafted a plan for a hundred billion-dollar fund to take on US tech firms, or so the reports say. I was wondering if that plan is against WTO rules as I have heard that state subsidies are illegal ...
  • 38k
8 votes

Why do farms need subsidies?

The claimed reasons for subsidies in the United States relate to the twin issues of good and bad harvests. In a year of a bad harvest, a farm doesn't produce enough food for sale to buy other ...
  • 88.6k
8 votes

Why is Germany subsidizing the cost of electricity for everyone rather than only the poorest households?

Note that how this subsidy is going to work in detail is not yet decided. What the government did so far is: state publicly that they want this to happen set aside a budget (up to 200 billion euros) ...
  • 4,375
8 votes

Why is Germany subsidizing the cost of electricity for everyone rather than only the poorest households?

Overhead costs and spite is the only thing it would give. The overhead of deciding who is eligible to receive the subsidy is costly. This would be a clear negative. Lets try to find the positives of ...
7 votes

Why did Rand Paul vote for tobacco subsidies?

I don't know how to properly read American bills, but from my reading of the amendment he voted down, it seems like all it did was single out tobacco producers as exempt from federal crop insurance. ...
7 votes

Why don't countries pay exponentially increasing amounts of money for every new child in the family?

germany has the Kindergeld, an allowance for the parents/legal guardians of children to help them cover the costs of raising the next generation. At times, this was partly exponential, with DM 50 for ...
  • 94.2k
7 votes

Why do many governments incentivize / subsidize (personal) home ownership?

I live in Norway, where owning your own apartment or house, is almost seen as a universal right, and there are very strong tax incentives. Renting an apartment or house is very rare. Most people in ...
6 votes

Why are so many countries subsidizing the electrical vehicle industry?

According to Forbes, even when an EV car is recharged with fossil fuels, it emits less carbon per mile than internal combustion (IC) vehicles. When an EV vehicle is recharged by fossil fuel power ...
  • 4,813
6 votes

Why do farms need subsidies?

The CAP in particular is a modern solution to the ancient problem of "feast and famine". The politics is messy but underneath is a very real problem: agricultural overproduction in one year drives ...
  • 21.6k
6 votes

Why do many governments incentivize / subsidize (personal) home ownership?

One special case is Russia, where over 70% people own their homes. Everybody knows that in early 90s, Russia was basically stolen by thugs who privatized state enterprises via opaque and corrupt ...
  • 8,661

Only top scored, non community-wiki answers of a minimum length are eligible