Subsidy
ˈsʌbsɪdi
Definitions
A sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
ˈsʌbsɪdi
Financial assistance provided by a government or other organization.
The city offered a subsidy to encourage businesses to relocate downtown.
💡 Simply: Imagine your favorite ice cream shop is struggling. The government might give them money, a 'subsidy,' to help them keep the prices down, so you can keep enjoying your treats!
👶 For kids: A subsidy is when the government gives money to help a business or person.
More Examples
Agricultural subsidies have a significant impact on global food prices.
The company was able to maintain its low prices due to a government subsidy.
How It's Used
"The government provides a subsidy to farmers to help them produce crops."
"The debate centered around whether the existing subsidies for the oil industry should be maintained."
Idioms & expressions
agricultural subsidy
Financial aid given to farmers by a government to support agricultural production and stabilize prices.
"Agricultural subsidies are a contentious issue in international trade negotiations."
energy subsidy
Financial support provided by a government to reduce the price of energy products or encourage the use of specific energy sources.
"The debate over energy subsidies often centers on renewable energy sources versus fossil fuels."
From Middle French *subside* (a contribution of money), from Latin *subsidium* (help, assistance, reserve troops), from *sub* (under) + *sedēre* (to sit).
The word 'subsidy' has been used in English since the 16th century, initially referring to financial contributions or aids, particularly those granted by the government.
Memory tip
Think of a SUB that is SIDed, or helped, with money.