RE: RE: Week 13 Response -- Subsidies
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RE: Week 13 Response -- Subsidies

RE: Week 13 Response -- Subsidies

Yes, short term subsidies would cause less distortion to markets and might plausibly result in a net benefit to society (especially if externalities are involved and the subsidies are only relied upon until the externalities are brought into the economic transactions).

However, has there ever been a short term government subsidy? History would suggest that subsidies take on a life of their own and are very hard to kill once they’ve been given life.

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