subsidize
SUB-sih-dyze
/ˈsʌbsɪdaɪz/
To support (an organization or activity) financially; to pay part of the cost of producing something to keep the price low.
Often implies government intervention in a market.
The story behind the word. Originally, a 'subsidium' was a body of troops 'sitting' in reserve to help the main army. It evolved to mean any form of help or aid, and eventually, specifically financial aid.
Word relationships
- fund: Funding is general; subsidizing specifically means paying part of the cost to lower the price for others.
- underwrite: Underwrite often implies taking on the financial risk of an endeavor.
- tax: To tax is to take money away; to subsidize is to give money to.
Commonly confused with
- subside: Subside means to sink or become less intense; subsidize means to provide financial aid.
Word family
- subsidy (noun): A sum of money granted by the state.
- subsidization (noun): The act of subsidizing.
Collocations
- heavily subsidize
- government subsidize
- subsidize the cost
Example sentences
- "The government decided to subsidize the cost of irrigation to help struggling farmers." Economic policy
- "Public transportation is often heavily subsidized to encourage people to leave their cars at home." Social commentary
Memory hook
Think of a 'Sub' (under) 'Side'—the government is on your 'side' by putting money 'under' the price to keep it low. Paying part of the bill.
When not to use
Don't use for a simple gift or donation; it usually implies a systematic financial support for a specific purpose.
Fun facts
- Global subsidies for fossil fuels are estimated to be hundreds of billions of dollars higher than subsidies for renewable energy.
Related words
Explore more words
subsidy, incentivize, patronage, Grant, stimulate, philanthropic
Also appears in
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