Agricultural Production And Its Effect On People 's Health, And Helping Low Income Families

1525 Words7 Pages
1. Introduction Subsidy is known as the payments or money given to individuals, firms or organisations by the government, in order to help them financially. In this essay, it will be discussed that, three main reasons for a government to subsidise a product, in terms of ensuring local output, improving people’s health, and helping low-income families. However, issues will be bought while granting subsidies, therefore, two cautions will also be suggested regarding the problem of inefficiency and damages to foreign producers who are not receiving subsidies. 2. Reasons for a government to subsidise a product 2.1 To ensure local output One of the reasons for a government to give subsidies is to ensure local output. Government will give out subsidies to local sectors, like farms and small businesses, helping them to set up or to continue their production. Although there are always imported goods from other countries, they cannot be fully relied on. Take agricultural production as an example, China ECONOMICS ESSAY !1 exports a large amount of agricultural goods to other places that have very few or no agricultural outputs, if there is a drought in China, those receiving the output might suffer from lack of food or have to accept the higher price from other countries. Therefore, in order to ensure local output for daily necessities like food, the government will subsidise this kind of productions. In America, there are food that the government is paying to produce, among all,

More about Agricultural Production And Its Effect On People 's Health, And Helping Low Income Families

Open Document