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we have here is a failure to communicate.

What is a subsidy? It is a gift from government treasury to an individual or corporate person. It is a grant. The meaning of grant and subsidy are identical.

A fossil fuel producer which receives a subsidy does not repay any amount of the subsidy. Accordingly, no one pays interest in return receipt for the subsidy received.

A renewable fuel producer which receives a subsidy does not repay any amount of the subsidy. Accordingly, no one pays interest in return receipt for the subsidy received.

Is a subsidy payment to a fossil or renewable fuel producer a financial investment?
No.

How do fossil and renewable producers spend their subsidies?
That is an excellent question. The answers pertain to merits of subsidy for either venture and may or may not be ascertained from information provided by recipients in financial statements, as required by SEC regulations or statute governing subsidy disbursement, for relevant reporting periods. Guessing might be more entertaining.

Who pays for a subsidy received by a fossil or renewable fuel producer?
The amount is drawn from current accounts of government income collected from foreign and domestic persons --individual and corporate tax returns, interest income from (un)marketable securities in custody of the FRB, penalties and fees, and proceeds of treasury bonds sales by government-- in the fiscal year budget(s) for which legislators itemize payment of the subsidy.

Is "growth" a transaction entry recognized by GAAP or GASB rules anywhere?
No.

"Growth" is a euphemism for the rate of earned income (sales, revenue) and unearned income (interest income) collected over time (reporting period) by a commercial firms.

Is a government a commercial enterprise?
Some people might believe, the most important purpose of government is financing commercial and war adventures. Legislators do appropriate funds for executive agencies to lend money to commercial firms operating in selected industries. Borrowers repay loan principal plus interest at a rate less than prevailing interest demanded by commercial lenders. Every subdivision of a government relies on subsidy to provide numerous, local public benefits.

Diversity is the key to economic and political evolution.

by Cat on Tue Jul 9th, 2019 at 03:31:10 AM EST
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