3-5 lines i attaches articals to help u understand also I attache prof quesiton

3-5 lines i attaches articals to help u understand also I attache prof quesiton on file question prof
SubsidiesPlease read the article by Simon Johnson on subsidies and rent seeking. He mostly describes the susbsidies received by the banking industry. However various industries receive massive amounts of subsidies from the government. I will mention a few of them here:Energy companies lease more than 80 million of onshore and offshore land in the U.S. at a very low cost and keep most of the profit from the oil and natural gas that they pump out. Royalty payments on what they sell are very low. In 1996 the government temporarily lowered the royalties on oil pumped in the Gulf of Mexico to encourage more drilling at a time when the price of oil was very low. When oil prices rose this royalty relief was not eliminated.The Telecom industry: In the late 1990s to encourage transition to high definition TV the government gave away large quantities of the digital spectrum worth ten of billions of dollars.The Mining industry: A law was passed in 1872 allowing companies to lease federal land for $5 per acre and then keep all the metals they found. We the people get no royalty payments even though metal prices have soared.Farmers get $5 billion annually in direct payments and billions more in crop insurance and drought aid. The US sugar industry benefits from import quotas that keep sugar prices twice as high as they would otherwise be.State and local governments give away billions of dollars annually in tax breaks and subsidies to lure companies from other US states.The Banking Industry benefits from FDIC insurance that allows banks to borrow at low cost. Simon Johnson has a lot more to say in his article on this industry.The Ethanol industry gets tax credits to blend ethanol with gasoline and uses 40% of corn produced in the US to make ethanol causing the price of corn for food to rise.The drug industry receives copyright and patent protection worth billions of dollars.Who pays for all those subsidies? We the taxpayer! Is this money well spent?
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