subsidies
Sums of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
Subsidies are often controversial because they can 'artificially' lower prices and encourage the use of fuels that might otherwise be too expensive or damaging.
Word relationships
- grant: A grant is usually a one-time payment for a specific project; a subsidy is often an ongoing support for a whole industry.
- allowance: Allowance is more personal or small-scale.
- tax: A tax takes money away from an industry, whereas a subsidy gives it.
- levy: A levy is a legal imposition of a tax or fee.
Commonly confused with
- incentive: An incentive is any reason to do something; a subsidy is specifically a financial payment.
Word family
- subsidize (verb): To support with a subsidy.
Collocations
- government subsidies
- agricultural subsidies
- fossil fuel subsidies
- eliminate subsidies
Example sentences
- "Critics argue that fossil fuel subsidies prevent renewable energy from competing on a level playing field." Climate Policy
- "The government provides massive subsidies to the coal industry to protect jobs." Global Trade
Memory hook
The government 'SITS' (sedere) 'UNDER' (sub) the industry to hold it up. Sitting under to support.
When not to use
Don't use for private gifts or investments. Subsidies almost always imply government involvement.
Fun facts
- Global fossil fuel subsidies were estimated at over $7 trillion in 2022, according to the IMF.
Related words
Explore more words
subsidy, subsidize, assistance, Pigouvian, anticompetitive, Grant
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