Harmful Subsidies

Harmful subsidies are government financial supports given to certain industries or companies that can lead to negative effects beyond their intended benefits. While subsidies aim to promote growth or protect jobs, they can distort markets by encouraging overproduction, reducing competition, and wasting resources on unviable businesses. This can harm consumers through higher prices or reduced choices, and may damage the environment if industries avoid sustainable practices. In essence, harmful subsidies can create an uneven playing field and lead to inefficiencies, ultimately undermining economic and social goals rather than supporting genuine progress.