Topic: The gloomy light called subsidy. (Read 691 times)

Agreed, most of the politicians and the rich won't suffer any difficulty out of this. So, without proper understanding about the common man's life they just lift the subsidy provided to the suffering people. This shouldn't be done and surely those funds could've been redirected for something else that's unnecessary.

Really these subsidies play a major role in common people's life. In my region fishing is done and for the same fishermen were provided with subsidy on fuel for the boat, at times it looks like whats the need for subsidy. In reality the income varies depending on the season and by those days this used to be a big favour.

This is my point exactly. These people are only making matters worst for the citizens of their country. They won't put the money saved to good use. Instead, they just mismanaged these funds even further. The excuse that they can no longer pay for subsidies is trash. They are just looking for excuses to stop paying.

What's the point of stopping subsidies if everything in the country would become so expensive and increase inflation even further? Most of these politicians don't suffer the policies they make so they go about making any kind of policies they want.

The big question is, can such a move save an economy that is already in shambles?

There are lots of things as citizens that we've enjoyed especially when it comes to essential things that government of our various countries have subsidize.
For some countries, government has helped in subsidizing food production, electricity, education,  transportation, health care services etc.
This subsidy goes ahead in reducing financial burden on the citizens.

 for some it is one way the government has helped them directly, because government gives them grants to support their businesses.
So I ask, what will happen if the government remove subsidy from some of the essential things that they helped citizens to subsidize, for example, fuel, electricity, food production, health care services etc.

Because I leave in a country, where the subsidy for PMS(petrol) has been removed, and almost immediately, the citizens are feeling the effect of the petrol subsidy removal.
The shocker this singler act has sent to the  spine of the economy of my country is second to none.
At this point, I've realised that, subsidy is one gloomy light that shouldn't be dimmed further  by any government.
Cause what other better ways can the citizens benefit from her government if the subsidy is taken off from those essentials that directly touch the standard of living of the citizens?

What do you think? Is government removal of subsidies from essential products, and services during this period of economic hardship people are facing the best policy a  government can embark on in the process of building her dwindling economy?

The subsidy idea in countries has been to alleviate the financial burden on importers so that the retail cost won't be much on her citizens. But some govt officials have turned the gestures to a scheme, enriching themselves with almost zero service delivery.

Certainly removing subsidies from essential products and services can be a controversial and complex measure...indeed, it is a measure that governments sometimes take to reduce spending, ease the tax burden, and address economic problems. But I think that this decision has important implications for citizens and the economy in general.. Well, simply eliminating subsidies for essential products and services means a significant increase in costs for citizens. In addition to disproportionately affecting low-income people, as they might find it difficult to cope with the higher prices, and not only that, but it would trigger an increase in the prices of the affected goods and services, which could lead to a general increase in inflation.. which, in turn, can erode the purchasing power of the population and negatively affect the standard of living.

the subsidy for PMS(petrol) has been removed

I do believe in the social welfare state, so I think that the taxpayers' money should be used to provide or at least make more accessible essential services, but the subsidy isn't a great measure because it can be removed. It can only work as a temporary measure, and I guess that's how it's often introduced, but removal of the subsidy should be planned in advance, and occur gradually to allow people to adapt. I think proper programs of social security are better than measures like subsidies, unless we're talking about the state subsidizing certain industries (like public transportation, for example), which is different because it's not on the level of individuals and can be a long-term commitment.

I don't think it's the best time to remove subsidies during times of crisis hardship. If a government wants to remove subsidies for certain sectors they should be doing so during boom times, when it's much easier to find a new job. Families are still hurting from the covid aftermath and the rising inflation, no point in making it worth by removing subsidies. Another question is if the country can really afford to remove subsidies in the first place. For example the agriculture sector in western countries are no competitive anymore, wages are too high to produce cheap food. But can a country really stop producing any food and only rely on imports? With more wars happening now, rising number of droughts and general food prices already very high, I think that every country needs to have some farms. Subsidizing the sector seems like the only option for the government to keep farmers happy and not quit their job. When it comes to necessary and essential products, some form of autonomy is important in case of larger conflicts.

What do you think? Is government removal of subsidy from essentials products, services at this period of economic hardship people are facing the best policy a  government can embark on in the process of building her dwindling economy?

There are lots of things as citizens that we've enjoyed especially when it comes to essential things that government of our various countries have subsidize.
For some countries, government has helped in subsidizing food production, electricity, education,  transportation, health care services etc.
This subsidy goes ahead in reducing financial burden on the citizens.

 for some it is one way the government has helped them directly, because government gives them grants to support their businesses.
So I ask, what will happen if the government remove subsidy from some of the essential things that they helped citizens to subsidize, for example, fuel, electricity, food production, health care services etc.

Because I leave in a country, where the subsidy for PMS(petrol) has been removed, and almost immediately, the citizens are feeling the effect of the petrol subsidy removal.
The shocker this singler act has sent to the  spine of the economy of my country is second to none.
At this point, I've realised that, subsidy is one gloomy light that shouldn't be dimmed further  by any government.
Cause what other better ways can the citizens benefit from her government if subsidy is taken off from those essentials that directly touch the standard of living of the citizens.

What do you think? Is government removal of subsidy from essentials products, services at this period of economic hardship people are facing the best policy a  government can embark on in the process of building her dwindling economy?

~snip

Subsidy is really good and a much needed one. This is a way to enrich and uplift people from the lower level to next level of living. This is the real purpose for which subsidy came into effect. In most of the countries this isn't getting followed in the right way as we will be able to see people who are filthy rich enjoying the benefits of subsidy. This is where the governments need to be corrupt free and the data management should be done perfectly so that the right person receives the subsidy and there is no need of removal of subsidy to handle the ongoing economic situation ans burden the real sufferers.

Through subsidy the government has helped them directly. With subsidies, consumers are able to access cheaper products and commodities. Subsidy can be in any form such like cash, grants, or tax. With subsidies, consumers are able to access cheaper products and commodities. An through this, government gives people grants to support their businesses. Subsidy helps people in their hard time, huge people depend upon subsidy. It's main aim is to reduced prices, thereby improving the state of the economy.

There are lots of things as citizens that we've enjoyed especially when it comes to essential things that government of our various countries have subsidize.
For some countries, government has helped in subsidizing food production, electricity, education,  transportation, health care services etc.
This subsidy goes ahead in reducing financial burden on the citizens.

 for some it is one way the government has helped them directly, because government gives them grants to support their businesses.
So I ask, what will happen if the government remove subsidy from some of the essential things that they helped citizens to subsidize, for example, fuel, electricity, food production, health care services etc.

Because I leave in a country, where the subsidy for PMS(petrol) has been removed, and almost immediately, the citizens are feeling the effect of the petrol subsidy removal.
The shocker this singler act has sent to the  spine of the economy of my country is second to none.
At this point, I've realised that, subsidy is one gloomy light that shouldn't be dimmed further  by any government.
Cause what other better ways can the citizens benefit from her government if subsidy is taken off from those essentials that directly touch the standard of living of the citizens.

What do you think? Is government removal of subsidy from essentials products, services at this period of economic hardship people are facing the best policy a  government can embark on in the process of building her dwindling economy?

Honestly, subsidy is truly a good benefit from the government. It is their duty to give subsidy to the most important services that their people need. Petrol is one of it because everything is being run and using petrol / oil for every move. Transportation, energy, and anything that we're using is being done with the use of petrol unless there's another source of it. Health care is also one of it, if a government isn't corrupt, there's a lot of sector where the government can provide subsidies. That's gonna ease the inflation rate that's being felt by everyone. On the other hand, it should be balanced, I also did saw some countries that have been giving subsidies to their people but still don't do good with their economy.