What does subsidizing mean?

A subsidy is a form of incentive that promotes the use of a product or service over another. The most common example is the government’s support of public transit, which provides a financial incentive for people living in a given area to use public transit over driving. The idea is that if you are paying for something, you’re more likely to use it, so the government or a private entity gives some of the money you would have spent on the product or service to you when you use

What does subsidize mean?

A subsidy is a benefit that helps you pay for something that you might otherwise be unable to afford, like a college education or a new home. The government or another organization pays for part of the cost of something. That's how the system works in the United States, and it's how most things work in the country.

What does it mean to subsidize?

A subsidy means that the government gives money to a business or organization without requiring repayment. In other words, the government pays a portion of the cost of a good or service above and beyond what the consumer pays. Often the subsidy is provided by a tax break that allows the business to keep more money than they would receive if the goods or services were priced at a higher rate.

What does the word subsidizing mean?

The term "subsidizing" refers to one entity (the government or a company) providing financial support to another entity (a private business or an individual). In the case of the government, the type of support can range from direct monetary aid to tax breaks, which eventually trickle down to the business or the consumer.

What does the word subsidy mean?

A subsidy is essentially a low-interest loan or payment made by one party to another. It can be in the form of cash, tax credits, or even reduced fees or waived fees. Think of a home buyer who receives a significant amount of money from the government in the form of a federally-subsidized mortgage. Or consider a mom who receives maternity benefits from her employer. These are all subsidies.