Yeah, we’re talking about very slightly different things—I was ignoring the opportunity cost of the subsidy in my mental model. Whether or not subsidizing an efficiency improvement benefits standard-of-living (compared to alternative uses of that money) depends entirely on the relative cost of that subsidy.
Yeah, we’re talking about very slightly different things—I was ignoring the opportunity cost of the subsidy in my mental model. Whether or not subsidizing an efficiency improvement benefits standard-of-living (compared to alternative uses of that money) depends entirely on the relative cost of that subsidy.