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Pros and cons of government subsidies

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List the pros and cons of the government awarding subsidies, perhaps as tax credits to companies for research and development?

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Solution Summary

The expert list the pros and cons of the government awarding subsidies. Tax credits to companies for research and development are examined.

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Subsidies can improve technology. Companies are sometimes reluctant to invest in R&D because they don't know if they will discover anything profitable. When subsidies support the research, it is more likely to be undertaken. The downside is that anything which interferes with the ...

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