What you should know about subsidies

Note: This is post #13 in a weekly video series on basic microeconomics.
What is a subsidy? A subsidy is really just a negative or reverse tax, explains Alex Tabbarok. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video by Marginal Revolution University, Tabbarok looks at the subsidy wedge and who benefits the most from different subsidies.
Read more on What you should know about subsidies…

The post What you should know about subsidies appeared first on Acton Institute PowerBlog.

Related posts:
Understanding tax revenue and deadweight loss
A Tithe for Uncle

Read more at The Acton Institute