Pakistonomy - Episode 158 - On Deficits and Debt
Pakistonomy
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The Importance of Subsidies
The majority of these subsidies go to the rich, but the narrative is always about the poor. When you think when you have electricity subsidies and it's not well-targeted, the rich do consume more power than the poor. Same thing if you have a gasoline subsidy, right? That the rich will be driving larger cars V8s as opposed to the smaller cars that consume very little gasoline. So I fully agree. And again, my analysis is very back of the envelope just to help people understand that the subsidy is essentially not getting to you. If we shift money away from subsidies and putting it into a good targeted program like BIS, the quality of spending can be improved where the
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