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The Art Of Subsidizing

Explained by Sir Humphrey:

May I give an example more appropiate for our times: What cars do most people want? In Germany it’s Volkswagen and in the US it’s Toyota. Yet, what companies do we subsidize? Opel and Chrysler…

But subsidizing the market leaders makes, of course, no sense, either. They are already strong enough. As a result of this logic thinking, subsidizing makes no sense at all. You see, sometimes you can teach economics without teaching economics. You just need common sense.

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