What is the term for money granted by the government to assist an industry or business to keep prices low or competitive?

The term that describes money provided by the government to support an industry or business, in order to help maintain low prices or enhance competitiveness, is subsidies. Subsidies are used by governments to encourage production, support local businesses, or even ensure that essential goods remain affordable for consumers.

By providing financial assistance through subsidies, the government can influence market conditions, often stepping in to stabilize prices or stimulate growth in sectors deemed important for the economy. This intervention can enable industries that may struggle under normal market conditions to survive and thrive, thus contributing to overall economic well-being.

Welfare refers to direct assistance provided to individuals or families in need, primarily aimed at aiding low-income populations. Grants are typically funds provided for specific projects or purposes, which may not necessarily relate to ongoing operational support in a competitive market context. Benefits, on the other hand, generally refer to compensation or services provided to workers, such as health insurance or retirement plans, rather than financial aid to businesses.