Subsidy

From Latin subsidium, "support, assistance," originally "reserve troops held in the rear" (from sub-, "behind, under," plus sedere, "to sit"). The military image of forces sitting in reserve to lend aid became a general sense of financial support supplied when needed.

  1. noun · /SUB-sih-dee/

    Money a government pays to support a business, industry, or activity, lowering its costs or prices.

    It reveals why some prices are lower than they "really" cost: part of the bill is being quietly paid by taxpayers to keep an industry or product affordable.

    A federal subsidy kept the rural bus routes running despite their losses.

    A subsidy props a producer up; a tariff fences competitors out — governments reach for both to protect home industries.