Write 500 words on this topic: “Is it possible to have state subsidies without state control?”
This week we continued reading the book How to Argue with a Liberal… and Win!, which was formerly published by the Foundation for Economic Education as Cliches of Socialism. This book really challenges the common liberal arguments using logic and reasoning. The book encourages the reader to think critically about government. This book has made me think a lot, and I want to try to answer the question, “Is it possible to have state subsidies without state control?”
To start off, a subsidy is a benefit given to an individual, business, or institution by the government. This might be direct, like cash, or indirect, like tax breaks. Subsidies are usually intended to reduce burdens and promote what is believed to be in the public’s best interest. However, despite these intentions, it is not possible to have state subsidies without state control as I will explain.
Though a subsidy might appear good, even beneficial, at first glance because it provides money and support to citizens, this can be described as the “seen” effect. The immediate benefit that people receive. But what most people do not see is the “unseen” effect. The money used for subsidies does not appear out of nowhere; it comes directly from taxpayers. In this way, subsidies form a full-circle system: the government collects money from citizens and then redistributes it to others. While this might seem helpful on the surface, it shows how subsidies rely entirely on the government for both the taxation of money and the redistribution of it.
For example, agricultural subsidies give farmers extra money to grow certain crops. Another example could be energy tax credits, which lower costs for homeowners installing solar panels. While these programs provide benefits, they all rely on government control to collect and redistribute money.
One more big issue with subsidies is the effect they can have on personal responsibility and work ethic. When most people become aware that the government is providing financial assistance, they may begin relying on the money rather than working to support themselves. If people believe that they can receive money without working, they might lose the motivation to earn their own income. This creates a situation where fewer people are working, meaning those who do have jobs must work harder to support everyone else. Because of this, the government must maintain control in order to continue collecting taxes and distributing subsidies, reinforcing the connection between subsidies and state authority.
To recap, subsidies are part of a government run system that entirely depends on taxes. Since taxes are required and enforced by the state, any system built on those taxes cannot exist without government control. The way the government collects money and redistributes it demonstrates that subsidies are not independent benefits but rather an outcome of state power. Therefore, it is not possible to have state subsidies without state control.
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