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subsidize

SUB-sih-dize /ˈsʌbsɪdaɪz/

verbB2GRESATTOEFLIELTS

FormalAcademicEconomicsPolitical

To support financially by paying part of the cost of producing or purchasing something.

Implies financial assistance granted by a government or public body to lower prices or encourage a targeted policy goal.

The story behind the word. From Latin 'subsidium' (auxiliary military force sitting in reserve behind the main line to offer aid). In modern economics, 'subsidy' came to mean financial reserves brought in by the state to bolster an industry.

Word relationships

underwrite: 'Underwrite' emphasizes guaranteeing financial support against liability or loss.
fund: 'Fund' means to provide total capital or financing, whereas 'subsidize' often covers only a portion of the total cost.

tax: 'Tax' levies a fee on an activity, increasing its cost rather than reducing it.
defund: 'Defund' means to withdraw monetary support entirely.

Commonly confused with

subdue: 'Subsidize' means to grant financial support; 'subdue' means to bring under control or quiet by force.

Word family

subsidy (noun): A sum of money granted by the government to assist an industry or business.
subsidization (noun): The act or process of providing financial subsidies.

Collocations

subsidize industries
heavily subsidize
subsidize housing
subsidize public transport

Example sentences

"The government chose to subsidize solar panel installation to accelerate renewable energy adoption." Public Policy
"Federal programs subsidize crop insurance to protect farmers against extreme weather events." Agriculture

Memory hook

SUB (under) + SEDE (sit): financial support sitting UNDER an industry to hold it up. Sitting underneath to support financially.

When not to use

Do not use for general charitable donations to individuals or non-targeted gifts.

Fun facts

In ancient Rome, 'subsidia' were third-line veteran military units kept in reserve for emergency assistance.