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Article: Federal Aid
- Article from:
- Dictionary of American History
- Author:
CopyrightCOPYRIGHT 2003 The Gale Group Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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FEDERAL AID
FEDERAL AID,
the granting of financial assistance to the states by the federal government for a variety of reasons. Federal aid is often confused with federal subsidies. If subsidies are considered deliberate governmental interference with market processes for the direct benefit of a particular group
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usually producers
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then all subsidies are aids. On the other hand, not all aids are subsidies. Thus, the school lunch program is designed to benefit a particular group in the population, but its effect on food production and prices is secondary, like that of other welfare subventions. Furthermore, outright subsidies are often justified
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sometimes remotely
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