sub⋅si⋅dy
[suhb-si-dee] 
| 1. | a direct pecuniary aid furnished by a government to a private industrial undertaking, a charity organization, or the like. |
| 2. | a sum paid, often in accordance with a treaty, by one government to another to secure some service in return. |
| 3. | a grant or contribution of money. |
| 4. | money formerly granted by the English Parliament to the crown for special needs. |
1325–75; ME subsidie < AF < L subsidium auxiliary force, reserve, help, equiv. to sub- sub- + sid-, comb. form of sedēre to sit 1 + -ium -ium
1. Subsidy, subvention are both grants of money, especially governmental, to aid private undertakings. A subsidy is usually given to promote commercial enterprise: a subsidy to manufacturers during a war. A subvention is usually a grant to stimulate enterprises connected with science and the arts: a subvention to a research chemist by a major company.
Based on the Random House Dictionary, © Random House, Inc. 2009.
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| sub·si·dy (sŭb'sĭ-dē) n. pl. sub·si·dies
[Middle English subsidie, from Anglo-Norman, from Latin subsidium, support : sub-, behind, beneath; see sub- + sedēre, to sit; see sed- in Indo-European roots.] |
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Subsidy
Sub"si*dy\, n.; pl. Subsidies. [L. subsidium the troops stationed in reserve in the third line of battlem reserve, support, help, fr. subsidere to sit down, lie in wait: cf. F. subside. See Subside.]1. Support; aid; co["o]peration; esp., extraordinary aid in money rendered to the sovereign or to a friendly power. They advised the king to send speedy aids, and with much alacrity granted a great rate of subsidy. --Bacon. Note: Subsidies were taxes, not immediately on on property, but on persons in respect of their reputed estates, after the nominal rate of 4s. the pound for lands, and 2s. 8d. for goods. --Blackstone. 2. Specifically: A sum of money paid by one sovereign or nation to another to purchase the co["o]peration or the neutrality of such sovereign or nation in war. 3. A grant from the government, from a municipal corporation, or the like, to a private person or company to assist the establishment or support of an enterprise deemed advantageous to the public; a subvention; as, a subsidy to the owners of a line of ocean steamships. Syn: Tribute; grant. Usage: Subsidy, Tribute. A subsidy is voluntary; a tribute is exacted.Cite This Source
subsidy
A grant made by a government to some individual or business in order to maintain an acceptable standard of living or to stimulate economic growth.
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subsidy
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Subsidy
A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.
Politics play an important part in subsidization. In general, the left is more in favor of having subsidized industries, while the right feels that industry should stand on its own without public funds.
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There are many forms of subsidies given out by the government, including welfare payments, housing loans, student loans and farm subsidies. For example, if a domestic industry, like farming, is struggling to survive in a highly competitive international industry with low prices, a government may give cash subsidies to farms so that they can sell at the low market price but still achieve financial gain.
If a subsidy is given out, the government is said to subsidize that group/industry.
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Macroeconomic Analysis
What Is Fiscal Policy?
See also: Fiscal Policy, Social Security, Taxes, Transfer Payment
Also spelled: Subsidization, Subsidize, Subsidized
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