Federal Subsidies Analysis

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Federal subsidies are a contentious point in public economics. They are supposed to benefit small businesses in theory but in reality large corporations are usually the ones that gain the most. This paper seeks to determine if there is any advantage to granting federal subsidies. An analysis of the impact federal subsidies (independent variable) have on the amount of corporate taxes paid (dependent variable) will determine the extent of the social benefits of subsidies. Subsidies in effect lower the cost of production which implies that, other things equal, profits should increase for a given quantity of output. Following this logic larger profits should result in an increase in the amount of taxes paid, ceteris paribus. Higher tax revenues…show more content…
The practice of using confined spaces, hormones to promote rapid growth in livestock, chemical insecticides to protect vegetables and lagoons for storing animal waste are methods that leave much to be desired and are harming our environment. Impact of Corporate Farming On Our Water Chemical insecticides and fertilizers have been leaching into our waterways for years. So has the livestock waste stored in lagoons by corporate farmers, some of which are as large as 200 acres. Once these have entered the ground, they will eventually enter our drinking water and all the streams and rivers that lead to the ocean. Not only is the water unfit for human consumption, it is now destroying the marine ecosystem and this is serious business when you consider how important the ocean's health is to human survival. The level of mercury found in tuna and salmon has already resulted in warnings about how much to consume because it is threatening to our very life. Close…show more content…
He, however, ruled out the return to an era of blind control to check prices. "We cannot react to such a situation by returning to an era of blind controls and by depressing agriculture terms of trade," said the Prime Minister. After having shaped an economy which is leading to high cost food for the poor, he has said he believes in running a 'hands off economy." This is putting the economy on autopilot for corporate control of food
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