Subsidies for squeaky wheels

Government support programs like the one offered to Holden distort an already twisted economy at the expense of businesses that genuinely need help.

The Australian government has just announced more massive subsidies to the local motor industry, with plans to spend a rumoured $200 million in return for the Holden's promise to keep its local operations open until 2020 or longer.

Meanwhile, on the other side of the world, the 2012 UK "austerity” budget has one bright side with big tax breaks for the games and television industries.

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