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Politics : American Presidential Politics and foreign affairs
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To: DuckTapeSunroof who wrote (31646)1/21/2009 12:22:08 PM
From: TimF  Read Replies (1) of 71588
 
If it is away from what a market-cleared price would be it is.

The difference would be, not the whole amount.

Imagine instead of overcharging, you had a market clearing price contract, and then you had a straight hand out for the same amount as the overcharge. Obviously the straight handout would be corporate welfare while the contract at the market clearing price would not be. Combining them together makes it a bit murkier exactly how much of the contract is effectively a government benefit to the corporation, but otherwise it doesn't change the calculation.
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