Subsidies--Can we survive without that? No we can not.

Jump to Last Post 1-2 of 2 discussions (5 posts)
  1. pramodgokhale profile image42
    pramodgokhaleposted 6 years ago

    Subsidies--Can we survive without that? No we can not.

    Modern economics and it's ills then subsidies provided by governments across the globe is an issue
    In India at present central government is slashing subsidies on many items and people are unable to cope with it. Fuel, fertilizer, power , these items citizens were getting at subsidized rates because they can not afford to buy at market rate. Grass root  people in India will be hurt badly if subsidies removed or curtailed. I heard, in USA farmers are getting subsidy 200% Experts can tell us whether is it right? wrong?
    What is the solution to survive without subsidies or with welfare schemes?

  2. My Esoteric profile image90
    My Esotericposted 6 years ago

    It depends on your definition of subsidy, I suppose.  I am in the middlle of listening to a lecture on economics and the professor is in the process of covering the impact of various types of subsidies, including those to which you refer.  Oy thers are minimum wage, rent caps and the like.

    By and large he understands the public necessity for such things but, from a purely economic view, thinks governments go about it entirely in the wrong way and they end up being counterproductive to varying degrees.  He isn't saying something should be done by the government, just done differently to work with how the economic system actually works and not against it.

    Minimum wage is one where he changed my mind, I used to be for it, now I am against it.  (He talked about the subsidies you mention, but I forgot the solution for the moment.)  He understands the need for a minimum earning by a worker to afford the basic food, clothing, transportation, housing, utilities, and child care; but, he also understands the counterproductive impact on the supply of low paying jobs as the minimum wage goes up.  (It was initially established in the US to protect low paid White jobs in the North from lower paid Black jobs in the South, btw)  The professor's answer is doing away with the minimum wage and increasing the Earned Income Tax credit to accomplish the same goal.

    It is a win-win-win because 1) it incentivizes people to work, because they can earn more money than what they get from public assistance alone, 2) they are incintivized to earn more since the more they work and move up the pay scale, the more they earn until the EIT "fades" away, and not suddently disappears, and 3) businesses can higher more because they no longer have a cost disincentive at the lower wage.

    The professor goes on to apply the same idea to other "subsidy"-type situations.

    1. pramodgokhale profile image42
      pramodgokhaleposted 6 years agoin reply to this

      your answer is informative and got information which i was unknown. Third world nations do not have efficient administration and governance so it is difficult and scarce job opportunities and tranditinal way of income small business and farming

    2. My Esoteric profile image90
      My Esotericposted 6 years agoin reply to this

      The first thing you have to have, it seems to me, is a gov't who truly cares, without that, a nation is lost.  Next, is you need a gov't who truly understands economics, and not quick fixes.  Both are almost unknown in the world today.

    3. profile image55
      WillWynn2posted 6 years agoin reply to this

      This sounds like your professor is in favor of the free market. With "proper" education, many problems of wages, prices and lifestyle would be answered.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)