Perverse subsidies (subsidies with unintended negative consequences)
Subsidies that support industries with high negative externalities that cause unacceptable hardships for people or environmental degradation are known as "perverse subsidies." Subsidies in general are intended to help foster economic development and/or support emerging industries or ailing existing industries, or to support industries that contribute basic goods, such as food, to a wide cross section of society at affordable prices. While subsidies can be effective without generating negative costs, it is important for policy makers to be aware of all of the impacts of subsidies including the unintended negative impacts. Citizens must also be aware of the unintended negative consequences, but also the mere existence of subsidies and how they shape and distort the economic landscape.