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Author Topic: Why do we need loans, since we have subsidies?  (Read 1791 times)
catch.me.if.you.can
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August 14, 2016, 09:38:38 PM
 #1

The loans, is fraud.
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pitham1
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August 15, 2016, 06:12:08 AM
 #2

The loans, is fraud.

Loans and subsidies are different.
Not everybody gets subsidies.
You should frame your question in a clear manner.

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August 15, 2016, 07:23:10 PM
 #3

The loans, is fraud.

Loans and subsidies are different.
Not everybody gets subsidies.
You should frame your question in a clear manner.

Right.
 "A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy."
 "A loan is the lending of money from one individual, organization or entity to another individual, organization or entity."

So, as pitham1 has said, not everybody can get subsidies. If only we could.  Tongue  lol.

https://en.wikipedia.org/wiki/Loan
https://en.wikipedia.org/wiki/Subsidy


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August 15, 2016, 08:10:51 PM
 #4

I disagree. Everybody can get subsidy. A portion of the taxes could be used for that reason.
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August 15, 2016, 08:22:31 PM
 #5



 "A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy."
 "A loan is the lending of money from one individual, organization or entity to another individual, organization or entity."


And here is the important question, how to get subsidy, how many of us can apply for subsidy and where?
Individuals, organizations make big profit on loans, and interest on loans depends from credibility some individual or organization have. That is zillion dollars profit each year for big banks and rich people. They don't wish to give their money for free.


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August 17, 2016, 11:08:35 PM
 #6

I disagree. Everybody can get subsidy. A portion of the taxes could be used for that reason.


But it can only be used for specific cases, unlike with loans where you can mostly spend it where you want.
(e.g. Child Care Subsidy,  Health Insurance Subsidy, Subsidized Housing etc)


And they have, Subsidy Eligibility Estimator, it's how your income compares to the Federal Poverty Level.


And here is the important question, how to get subsidy, how many of us can apply for subsidy and where?
Individuals, organizations make big profit on loans, and interest on loans depends from credibility some individual or organization have. That is zillion dollars profit each year for big banks and rich people. They don't wish to give their money for free.

That's the hard part. wew.  Sad


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August 18, 2016, 01:33:11 AM
 #7

I think not everybody can get a subsidy usually without any issue, but taking loans is a lot more simple and easy for everyone, that's why people prefer taking loans when they need money.
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August 18, 2016, 03:56:47 AM
 #8

Not everybody taking a loan is even in a bad situation that would call for subsidies.  People take out varand mortgage loans all the time when they are making plenty of money. Its just about being able to go spend money you don't have at the moment.

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August 18, 2016, 04:44:03 AM
 #9


But it can only be used for specific cases, unlike with loans where you can mostly spend it where you want.
(e.g. Child Care Subsidy,  Health Insurance Subsidy, Subsidized Housing etc)
Exactly, even if I get a subsidy I can not spend them on things that I want, most of us take a loan is not always to gamble or do somthing bad but sometimes also to develop our business or anything unexpected happens in our lives, and it's proccess is quite fast, in my area you can get loan only in couple minutes
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August 21, 2016, 10:19:21 AM
 #10

You are jumbling on two topics. Loans and subsidies are two different things and we should treat it in such manner.  These concepts are something similar but not the same.

One asks for loan in the condition when his liabilities are more than his earnings/assets (of course there are few exceptions to this) but I think, subsidies is kind of regular flow irrespective of current situation. There is fundamental difference between these two concepts and both have their own pros and cons.

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August 21, 2016, 12:46:14 PM
 #11


But it can only be used for specific cases, unlike with loans where you can mostly spend it where you want.
(e.g. Child Care Subsidy,  Health Insurance Subsidy, Subsidized Housing etc)
Exactly, even if I get a subsidy I can not spend them on things that I want, most of us take a loan is not always to gamble or do somthing bad but sometimes also to develop our business or anything unexpected happens in our lives, and it's proccess is quite fast, in my area you can get loan only in couple minutes

If you can get a loan in a couple of minutes, it means that you have sufficient assets to back up the loan.
Subsidies, on the other hand, are given by the government to people who need help.

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August 22, 2016, 11:42:57 PM
 #12

The loans, is fraud.
of course it is a fraud, thats how banks make a lot of money from the people who put their money into it, thats why i dont use banks
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August 23, 2016, 04:19:41 AM
 #13

The loans, is fraud.

Loans aren't fraud, unless ppl don't pay back their loan or lenders seize collateral illegally.

Loans actually increase the spending power of the population, which improves the economy. The problem is that if ppl borrow too much they could default which hurts them and the economy. But if we didn't have lending we wouldn't have the great products and services that exist today, because nearly all of them required a businessman to take out a loan to develop.

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August 23, 2016, 05:39:09 AM
 #14

loans are required to barrow during an emergency of fund requirement. loans are good on long run if it is giving more value than the current value of the asset or whatever. but too much loan is not good , loan should be taken where you can afford to pay without disturbing your current expenses. and subsidy will not be there for every one , but depends on the country you are living.

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August 23, 2016, 05:39:50 PM
 #15

The loans, is fraud.
it is not a fraud, people take money from the bank and then they have to give it back with some more money, everything is ok with that
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August 24, 2016, 11:09:10 AM
 #16

The loans, is fraud.

What are you talking about?

Who are "we" in your question?

To answer your question.We need loans to buy things we don`t need. Grin


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October 04, 2016, 08:21:18 AM
 #17

The loans, is fraud.
I think that we some people need loans because the subsidy is just not enough for them and they have to take a loan on top of that.
Some people have it really hard and they need all the money they can get in order to survive.
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October 04, 2016, 08:34:57 AM
 #18

I think those two are entirely different things and one cannot simply replace the other. Subsidies can be of different forms. The government subsidizes some of the things / service that we use in our daily lives. In case of loans, the government also gives loan but with a certain percentage on top of it, as a revenue generator for them.


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October 04, 2016, 08:39:14 AM
 #19

I disagree. Everybody can get subsidy. A portion of the taxes could be used for that reason.

Everybody? in what Country? in what condition?
If you live in north europe maybe you can get some special subsidies, but in the rest of the world you can only dream "free money"
and probably in a couple of years most of this funds are going to be only a memory of the past!

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October 04, 2016, 08:49:55 AM
 #20

so whaddaya expect to be subsidized,most of subsidies as i've soon not fully recover the price of the stuff it's only cut off the price because it will be distributed fairly in any other categories that could cover people needs,and subsidy definitely not the same as loan


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