Subsidizing

Subsidizing refers to the practice of providing financial assistance or support to an individual, group, organization, or industry to encourage a particular action or to help maintain a lower price for certain goods or services. This economic strategy is often employed by governments to promote welfare, stimulate economic growth, or correct market failures.

Subsidizing meaning with examples

• The government is subsidizing renewable energy projects to encourage a transition to cleaner sources of power, benefiting both the environment and the economy by creating jobs in the green sector.
• By subsidizing agricultural products, the state aims to stabilize food prices and support local farmers, ensuring food security and a stable income for those involved in agriculture.
• Many educational institutions are subsidizing tuition fees for low-income students, thereby increasing access to higher education and promoting social equity in academic achievements.
• Local authorities are subsidizing public transportation to reduce congestion and pollution, making it more affordable for residents to choose eco-friendly commuting options.
• The healthcare industry is facing challenges, prompting some governments to consider subsidizing certain medical services to improve access for disadvantaged populations and reduce overall healthcare costs.