Push it to see what happens to the market. #tuttletwins #subsidies #economics

[BigLittleFedoraProdt]

I think people forget that it's also not small businesses that are actively trying to throw the market off but rather subsidies given to larger corporations that then turn around with the money they save pay themselves more money and screw over the workers that they have under them.

[Echotracers]

Realistically if the umbrellas got a subsidy like that, they would charge $1.90 an umbrella, and the CEO would get a $0.90 bonus this quarter for every umbrella sold.

[ChipArgyle]

What a subsidy does to a market, a lobbyist does to policy.

[Therealromario]

Oil price is now around 2$ a gallon
That's unrefined oil.
If the government stops subsidizing oil/gas you'll pay over 10$ a gallon when tanking gass

Renewable green energy get much less subsidy to just give you an idea.

[deepspacecow]

Some industries pretty much need subsidies to survive, like farming. They can be useful in the right places.

[TheMoldyOne]

It is not just allowing them to compete at a lower price but also makes a false demand in the market that doesn't have support from paying customers. If a business can't keep up demand for their product they shouldn't exist.

[JustTheChurchTheory]

I don't really see anything wrong with subsidies if used right, it worked well in my country and helped to reduce the price of a lot of things

[rainyfriday]

The goal is to have an industry so big that your closure could mean an entire breakdown of a market, forcing government to always subsidize you.

[kaligath]

Yep subsidies on paper would look like a good thing to help a business grow but in practice people would abuse it to undercut their competitors and instead bring down there competitors to there level.

[Hellsong]

And that way they control on what people are pressed to buy, even though it should be up to customer to choose witch one suits them better. Best current example is EV's. Those might work for some people, but not for waist majority and end result is far too rapidly developed market that cant keep up and its total mess like folk tested on public charging where wait times were hours upon hours cause grid cant supply the small villages worth of power to each charging station required to charge 10 ev's even if those vehicles are capable of fast charging. Also if there is unexpected issues and you are stranded due battery running out for instance charger on the midway point is out of order, you need generator to charge it, while road assistance always carries little fuel with them for you to get to your location and filling takes couple minutes instead of hours.

[jamesdriver]

I thought he said Mr Meeseeks like from Rick and Morty for a second and I thought I was gonna hear “I’M MR MEESEEKS LOOK AT

[HeadlessZombY]

I mean, this is of course an extremely anti-subsidy message, but in economics the reason you would subsidize a market generally is to protect them from foreign competitors. like, say a large portion of your country is employed in X industry, to prevent unemployment due to foreign products being cheaper, you can subsidize the industry to protect people from losing their jobs and crashing the local economy because of foreign market fluctuations. (because if a lot of people lose their jobs, there's less people in your country who can pay for the goods being purchased and so it can get worse over time)

in other words, it's to prevent a market crash in your local economy.

doesn't mean it's always used correctly, but that is why they are done in theory.

[_Axel_G_]

What in the Warren Buffett I'm looking at?

[MillieEyelash]

But usually they don’t do it to private companies, they do it to full industries. Remember, it’s to benefit the people since their tax paying money is being used. If a whole industry can apply for the subsidy then it’s not unfair competition. We need this for industries such as farming. The example used wasn’t really good to illustrate this.

[The_Internet_guy]

Wait, angel studios? So you're telling me the same people who made: The Sound Of Freedom/A movie about an operation, stopping pedos. Made The Tuttle Twins/A fun little show teaching kids how the world works

[weird_observations]

I don't think the oil Barron's paying for this TV show will like this episode.

[zonked]

unless you're a college, in which case you raise your prices instead, because you've got a locked in market.

[robdom]

Basically, the best way for politicians to help the free market is to friggin' don't touch anything!

[alexcovey]

Subsidising was meant to upkeep key industries that would not be profitable on their own.

So key examples would be microchips or passenger rail. Neither are that profitable in western nations and require subsides.

The problem is that subsidies have basically benn used wrongly to cteate a suedo cronyist economy.

[owea]

yeah, real messed up markets when farmers cant afford to survive on not having enough money and food prices inflate to 200% of what they were before and cause shortages. Some money needs to be relocated for an economy to work in the modern day