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| Say I go to the grocery store to buy a $3 loaf of bread.
The government has decided to subsidize 2/3 the cost of bread. The government also sets the price such that all retailers of bread must sell bread for $3 and the bread must be the same no matter who you buy it from.
I pay $1 and the government pays $2. I agree that the grocery likely sells more bread than they would without the subsidy. I disagree that the government should pay me $2 for not buying bread. Hard to argue to the buyer of bread does not receive bulk of the benefit. | |
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Crop Insurance Subsidies
