American Musical and Dramatic Academy US Government Subsidies Research – assignmentcollections.com
Business Finance Assignment Collections – assignmentcollections.com
question:
Subsidies are government payments to agricultural, textile, energy, and other producers to make or not make something. These subsidies have an impact on the amount produced and the price of the subsidized product.
Do a web search on the pros and cons of U.S. government subsidies.
Pick out one specific subsidy and respond to the following:
As both a US taxpayer and consumer, state your opinion about this subsidy. Is this subsidy a good idea? What is its purpose? Who does it benefit (both by design and in reality)? Who is the primary advocacy group supporting it? Should it be increased, reduced, or eliminated?
Take a look at your classmates’ responses before you do your research and try to pick out a subsidy that hasn’t been covered yet.
2 peer answer:
Peer1:
I chose to focus on the United States’ Fossil Fuel subsidy. The fossil fuel subsidy is one of the largest government expenses and is widely overlooked by the people. According to the International Monetary Fund (IMF), in 2015, direct and indirect fossil fuel subsidies totaled $649 billion, which topped the expenses of the Pentagon, which came in at $599 billion.
For the purpose of this assignment, I will focus on gasoline, as that is what affects me, and many Americans the most. Although gasoline itself is not a fossil fuel, it is derived from crude oil, which is. Part of the fossil fuel subsidy is in place to lower the price of gasoline, which in return, lowers the burden on most citizens. There are many debates as to whether these funds should be limited for the sole purpose of gaining more profits (and to reduce pollution, but that is beside the point!).
As alternative solutions to coal, oil, and gas are discovered, more and more people are less accepting of this subsidy and I can’t really blame them. Personally, I am not a huge fan of the amount of funding it receives. Although I would hate to pay a higher price per gallon of gas, reducing the fossil fuel subsidy would free up funds that could be allocated to better causes, including education (10x more is spent on fossil fuel than education!) and agriculture.
Peer2 :
One of the subsidies that I discovered was ‘Stock’. As both a US taxpayer and consumer I find it unnecessary for some items to have such a high stock price compared to the market, although I understand at the same time that companies have to maintain growth. Overall, I believe this subsidy is a good idea, we have already been using this “method” for years now. The purpose of a stock subsidy is to grow businesses and other types of markets that meet and satisfy our needs and wants. Political organizations are the primary advocacy group supporting stocks. I do not think that stock subsidies should be neither increased, decreased, or eliminated.
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