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A subsidy is money from the state given to specific industries to lower product prices. For example, if it costs $10 for Bill to make a hat, but someone in China can do it for $5, a $6 subsidy from Uncle Sam can help Bill compete. Subsidies can benefit society by encouraging new technologies like solar energy or NASA exploration. However, they can also harm by making certain industries unprofitable in the U.S., leading to unfair competition with less developed countries like Brazil.
