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What is the background for support of government subsidies?

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The government provides subsidies, money that the government either gives or loan to various organizations and corporations, to support their interests. America gives subsidies to an array of things, including farming, healthcare, housing, and oil. The distribution of money is not without controversy. One might be critical of why America funds unhealthy food or the already very profitable oil industry.

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When we talk about subsidies we're talking about money that the government either gives or loans to various companies and organizations. Why does American give money to these areas? They do so to promote the country’s interests.

One area that America subsidizes is farming. This makes sense. America wants a stable and robust food chain. They want to make sure the food supply is strongly supported in case of unforeseen circumstances. Since 1995, the government has given farmers almost $300 billion in the form of subsidies.

This has not been without controversy. Some of the foods that are made with the subsidies—including pizza and ice cream—are quite unhealthy for Americans. We might ask if Americans want their government spending their money on foods that aren't good for them.

This brings us to another issue about subsidies. The subsidies don't always benefit the majority of American people. When America gives the oil industry around $20 billion a year, it's fair to ask who that money generally benefits. Keep in in mind, oil is one of the wealthiest industries. In 2018, they made an estimated $181 billion dollars. Again, it wouldn't be unfair to ask why such a profitable industry needs the government to give it even more money.

As you review subsidies, you might find that the areas America tends to invest support the people with power and wealth more than people without much influence or money. You might want to look at income inequality and see how subsidies and government spending has exacerbated the gap between the affluent and the lower economic classes.

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