The textbook defines market participants as consumers, producers, and governments charged with regulating markets for the economy’s good. Consumers, like those in this class, need and want things that we deem essential for our livelihood. Producers make those goods and supply services. In a capitalist economy like ours, producers must make a profit, or they cannot remain in business. Governments enact laws and regulations to make markets work. However, there is some evidence that, at times, those regulations favor certain special interest groups at the expense of the majority. For example, science agrees that the earth is warming primarily because of our use of fossil fuels. However, the U.S. Government subsidizes the fossil fuel industry for $646 billion yearly. Globally that subsidy is $5.4 trillion. Most of the meat that Americans eat comes from factory farms. The U.S. Department of Agriculture subsidizes the livestock industry for $50 billion yearly. Federal, state, and local subsidies to General Motors amount to $7.6 billion. Do these subsidies favor one market participant over another, and do they help or hurt the U.S. economy? Sources: SEN. WHITEHOUSE ON FOSSIL FUEL SUBSIDIES: “WE ARE SUBSIDIZING THE DANGER.” (2023, May 3). Subsidy Tracker. (n.d.). © Good Jobs First. USDA livestock subsidies near $50 billion, EWG analysis finds. (2022, February 28). Environmental Working Group.

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