A subsidy is meant to supplement a particular adverse or burdensome economic condition for individuals and businesses. Subsidies may be provided by both governments and businesses. Governments may provide subsidies in the form of tax cuts and unemployment and welfare benefits. A business may subsidize the operations of a newly acquired business until it becomes profitable. Subsidies are meant to be a temporary relief.
Some common subsidies are tax benefits for electric car owners and payments to farmers. Electric car owners receive a tax break due to the low emissions of electric cars, which promote social benefit. Farmers may receive subsidies for not farming specific land because crop yields will result in a loss for the farmer due to depressed prices.
