Subsidy Meaning: Definition, Examples, and Translations
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subsidy
[ˈsʌbsɪdi ]
Definition
government support
A sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
Synonyms
financial aid, grant, subvention.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| subsidy |
This entry appears to be a duplicate and its context is covered above. |
| grant |
Use when money is awarded for a specific purpose without the need for repayment, typically by a government or organization to an individual or group for research, projects, or startups.
|
| financial aid |
This is commonly used in the context of education to refer to funds provided to students to help pay for their education.
|
| subvention |
A formal term often used in legal, governmental, or economic contexts to describe subsidies or aid given to an organization, institution or sector.
|
Examples of usage
- The agricultural sector receives subsidies to ensure food security.
- The government provides subsidies to encourage the use of renewable energy sources.
- Subsidies are often given to struggling industries to prevent job losses.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Historical Origins
- The term originated from the Latin word 'subsidium', which meant support or assistance, especially in military contexts.
- Subsidies have been used since ancient times, such as in the Roman Empire, where the government provided financial aid to support agricultural production.
- During the Industrial Revolution, many governments began using subsidies to support emerging industries, reducing the financial risks for business owners.
Economics
- Subsidies can lower prices for consumers, making essential goods like food and housing more affordable.
- They can encourage production in certain sectors, promoting economic growth and job creation.
- Disproportionate subsidies can sometimes lead to market imbalances and may favor certain industries over others.
Education
- In many countries, subsidies assist students in covering tuition costs, making education more accessible.
- Educational subsidies can take the form of scholarships or grants, helping reduce the financial burden of attending college or university.
- Public schooling is often subsidized to ensure that every child has access to education regardless of family income.
Agriculture
- Many governments provide direct payments to farmers to help stabilize their income and encourage food production.
- Subsidies in agriculture can be a way to support environmentally friendly practices and sustainable farming.
- Price supports for crops ensure that farmers receive a minimum price for their goods, which helps them maintain their livelihood.
Pop Culture
- Film industries sometimes receive subsidies to encourage movie production, helping to create local jobs and boost tourism.
- In the music industry, artists may receive subsidies or grants, allowing them to create more freely without financial constraints.
- Television programs focused on cultural education often receive subsidies to promote the arts and humanities.
Origin of 'subsidy'
The term 'subsidy' originated in the 14th century from the Old French word 'subsidie', which in turn came from the Latin word 'subsidium' meaning assistance or support. The concept of providing financial aid or support to industries or businesses dates back to ancient civilizations, but modern practices of government subsidies began to emerge during the industrial revolution.