Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
Government subsidies are financial assistance or support given by the government to individuals, businesses, or industries to promote certain activities or achieve specific goals.
Related terms
Tax Incentives: These are special deductions or exemptions in taxes that encourage individuals or businesses to engage in specific behaviors, such as investing in renewable energy.
Agricultural Subsidies: Financial aid given by the government to farmers to support their agricultural production and ensure food security.
Student Loans: Although not technically a subsidy, student loans can be seen as a form of financial assistance provided by the government to help students afford higher education.