What is a Subsidy & How Do They Create Messed Up Markets? | Ludwig von Mises | Tuttle Twins

[@keyoteamendelbar8742]

When things get messed up due to unintended concinquences, the best thing to do is understand the mistake and do your best to set things right.

[@DMCPhoto]

Which creates another unintended consequence, requiring another correction, creating another unintended consequence… and after a few decades the government doesn’t even know how many laws, rules, and regulations it even has.

[@MattFrost224]

I love the honesty this series provides!

[@mr.e2962]

Mises is the Goat!!

[@SundayMalgwi]

In my country, the main subsidy used to be on petrol. I think there's not much unintended consequences there because petrol is useful in many cases, even to other businesses. It was then removed by the current government, causing rapid inflation. Was it a good idea. And how. You guys do a very great job. I hope you get the recognition you deserve.

[@afonsomendes6907]

if by rapid inflation, you mean petrol prices quickly rose after removing the subsidy, then this is a simply a healthy correction back to fair market value. Putting it in terms of this video, remember how both the umbrella and the poncho cost 2 dollars at the beginning. After the subsidy, the umbrella dropped to 1, and the poncho remained at 2. After you remove the subsidy, the umbrella maker would no longer make a profit selling at 1 dollar, which would force him to raise the price back to the original 2 dollars. So in this example, the petrol in your country is like the umbrella

[@aliyumuhammaddahir4389]

You are talking about naija bro

[@mr.e2962]

Mises is the best.

[@drip_gami458]

Him and Hayek are some of my favorites in the line of Austrian economics. Glad to see this channel cover both of them recently.

[@ihin2005]

Great series! Do an episode with Hans Hermann Hoppe please!

[@gustavojose280]

Brazil has a law called Manaus Free Trade Zone. It's funny because they have decided to build an Industrial zone in the middle of the jungle but the pieces to use in these industries are made in big cities that are more than 3500 km far from Manaus.

[@marten3451]

If the government wants to support certain business through Subsidy, maybe its best to take a look at those business as to why the government would invest in them

[@keyoteamendelbar8742]

From what I see, subsidies are a good thing if they are used correctly. Unfortunately, some people like to cheat the system and make things go badly for those who actually need the help.

[@afonsomendes6907]

all government intervention in a free market leads to net loss. A government might raise tax money to build a pretty bridge. If you just look at the bridge and all the people the project employs, you might be tempted to think this is an example for a good subsidy/government intervention. What you dont see, is the 100 schools and 10 hospitals that werent built because of this, and all of the people that are now not employed, that would have had a job if you just let the free market work itself out

[@markarca6360]

Subsidies from the Chinese govt is the reason why the Chinese-made EVs are cheap. That explains the reason why the U.S. and E.U. wants to hike the tariffs for these.

[@sekarmaltum1695]

based. i usually would say that tarifs are bad, but in this case? nah, its appropriate

[@JesusCaminoGarcia]

:)

[@TickedOffPriest]

Emily, you need to have more confidence in yourself.

[@charles213]

As if the unregulated free market benefits anyone except the super rich