11 Ways the Government is Making you Poorer
Price Supports- When the government wants to encourage us to buy one product over another, they will often subsidize it, providing tax money to the company in an effort to lower the sticker price. While this hides the true cost of the item to the consumer, it also has an adverse effect on the market, insomuch as it gives the subsidized product an unfair advantage on its competition. This leads to an overall reduction in competition which can cause prices to rise, further ensuring people only buy the cheaper, subsidized product. However, the savings is an illusion; you’re paying the full cost of that item one way or another, whether it be at the checkout or later via taxes. Subsidizing products to lower their prices only leads to less competition and higher costs.
