Subsidies: The Pros Economists who promote a mixed economy often argue that subsidies are justifiable to provide the socially optimal level of goods and services which will lead to economic efficiency.
This increases the overall supply of that good or service, increases the quantity demanded for that good or service and lowers the overall price of the good or service. Indirect subsidies are those that do not hold a predetermined monetary value or involve actual cash outlays.
Money from the subsidies had to be taxed from individual income, and consumers were hit again when they faced higher food prices at the grocery store.
The analysis performed by the World an analysis of subsides an analysis of the stranger Energy Outlook is aimed at. Others suggest that government spending on subsidies is never as effective as government projections claim they will be.
Economists and policy makers often debate the merits of subsidies, and by extension, the degree to which an economy should be a mixed one. The big six energy companies are required by law to pay householders who generate their own energy.