State Subsidies and State Control

Is it possible to have state subsidies without state control? Subsidies are a sum of money granted by the government to an industry in other to keep prices low. Government doesn’t have any money so in order to have state subsidies the government must plunder (tax) it’s citizens. Like all other grants there are strings attached. The United States Supreme Court in 1942, in the case of Wickard vs. Filburn, opined: “It is hardly lack of due process for the government to regulate that which it subsidizes.” In other words the court ruled that if you accept states subsidies you should also expect state control. There is no way to have one without the other. The state hands out subsidies in order to legally control those who receive them. The answer to the question is simple, If you do not like state control, then you should not accept state subsidies.


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