Exxon/Mobile profit soars

[Kidlicious]

Originally posted by The Mad Monk


sub·si·dy ( P ) Pronunciation Key (sbs-d)
n. pl. sub·si·dies
Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest.
Financial assistance given by one person or government to another.
Money formerly granted to the British Crown by Parliament.

http://dictionary.reference.com/search?q=subsidy&db=*

Where do you get your definition?

This one isn't that bad. The government and the person recieving the subsidy regard it as in the publics interest, but even if it's not, it's still a subsidy.

[Imran Siddiqui]

I'd get tired too fast .

[TCO]

time for ice crea, got to walkj to the gas station.

[TCO]

bye.,

[Imran Siddiqui]

Ah, the Chevron .

You finish the Pistatio and the other flavor already?

Man, you're an ice cream machine .

[The Mad Monk]

Originally posted by Kidicious


This one isn't that bad. The government and the person recieving the subsidy regard it as in the publics interest, but even if it's not, it's still a subsidy.

I don't think the key portion is public interest, but assistance, as in a gift, something given without recieving something directly in return.

[Kidlicious]

Originally posted by The Mad Monk


I don't think the key portion is public interest, but assistance, as in a gift, something given without recieving something directly in return.

If it's not in the publics interest then it's a bad subsidy. The same as taxes that are not in the publics interest.

[TCO]

Originally posted by Imran Siddiqui
Ah, the Chevron .

You finish the Pistatio and the other flavor already?

Man, you're an ice cream machine .

WHat it was almost gone after you left.

umm...yes.

[The Mad Monk]

...but it would still be a subsidy.

Which is different from, say, giving money to OfficeMax and receiving a truckload of office supplies in return.

[TCO]

Originally posted by Kidicious


If it's not in the publics interest then it's a bad subsidy. The same as taxes that are not in the publics interest.

Buying goods at market price is not a subsidy. It's an exchange.

[Kidlicious]

Originally posted by The Mad Monk
...but it would still be a subsidy.

Which is different from, say, giving money to OfficeMax and receiving a truckload of office supplies in return.

It's just a different subsidy. It doesn't matter if the government spends money on goods and services (the price has nothing to do with it) or it makes a transfer payment.

[Kidlicious]

Originally posted by GP


Buying goods at market price is not a subsidy. It's an exchange.

Look at the definition the Mad Monk provided. You have a negative connotation about subsidies which is preventing you from understanding the meaning of the word.

[Dauphin]

Originally posted by GP


Buying goods at market price is not a subsidy. It's an exchange.

Its a form of subsidy if the government is doing so when it doesn't have to.

I don't know the deal with CAP but didn't it involve farmers' produce being bought at market value?

[Kidlicious]

Originally posted by Big Crunch


Its a form of subsidy if the government is doing so when it doesn't have to.

I don't know the deal with CAP but didn't it involve farmers' produce being bought at market value?

A payment by government, perhaps implicit, to the private sector in return for some activity that it wants to reward, encourage, or assist.

Here's the best definition I could find. I wish I had my old Public Finance text book. True, the government can encourage the production of a good or service by paying market price.

[Kidlicious]

The way I understand the meaning of the term is an expenditure by the government to either alter the production of goods and services or the distribution of goods and services in the economy. Since all government expenditures do that, government expeditures and subsidies are one in the same.