Just read a bit about the massive subsidies the fossil fuels industry receives in the U.S and I was confused. Aren’t these companies one of the most profitable ones in the U.S?
In: Economics
Everything in the modern world runs on fossil. Farmers need fuel, electricity needs fossil, transportation needs fossil. If oil prices increases, everything does.
In a vacuum, oil is a regressive tax and disportionally affects the poor and working class people.
Secondly, federal subsidy is usually in the form of tax waivers, rather than direct cash assistance. Oil and gas companies can achieve the same subsidy by stop drilling which would drive prices of everything up. It’s easier to just give them the tax benefit.
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