subsidy

UK[ˈsʌbsɪdi]US[ˈsʌbsɪdi]

money that is paid by a government or an organization to reduce the costs of services or of producing goods so that their prices can be kept low

financial assistance given by one state or organization to another

Morpheme Breakdown

sub

sidy

sub

under, near

sidy

sitting, settling

Etymology

The word "subsidy" entered English in the late 14th century from Anglo-French subsidie and ultimately from Latin subsidium, meaning "help, aid, assistance, reserve troops." The Latin term is a compound of sub- "under, near" and sedēre "to sit." The literal military sense was of troops "sitting in reserve" or stationed nearby to provide support. This concrete image of a reserve force ready to assist evolved into the abstract financial meaning of a reserve of money provided by the state to support an enterprise or keep prices down. The semantic shift reflects the logic of moving from military backup to pecuniary aid, both forms of crucial support supplied from a central reserve.

Analysis

Structure: sub (under, near) + sidy (sitting, settling) sub- is a Latin prefix meaning "under, near, from below, up to, secretly." -sidy is derived from the Latin root 'sid-', a variant of 'sed-' (to sit, settle), combined with the noun-forming suffix '-ium' which evolved into '-y'.

Examples

The government provides a substantial subsidy for public transportation.

Farmers protested against the removal of agricultural subsidies.

The industry survives only because of massive state subsidies.