I wrote a lengthy reply to a similar question:
Got it, dumb capitalist nonsense.
Flattening the territory to fit the map.
How is a government subsidy “dumb capitalist nonsense”? The capitalist model would be for a single entity to buy all the small farms that can’t stay in business during volatile market periods and monopolize the market entirely, with zero care to animal welfare, food safety, and customer prices (other than to maximize profits). Your comment is just just lazy “muh capitalism bad”.
Previous poster might be spamming his opinion, but in this case he’s right.
In this particular case the government is financing capitalists by giving them money to keep capitalising on something they couldn’t otherwise capitalize on. This happens on an otherwise free market, just to add.
What they should have done is to lower the purchase tax on domestic eggs. That would benefit both Norwegian consumers and also Norwegian egg producers.
Norway already has several sales tax brackets to do just this. F.i. they did it to hotels, going from 25% to 6% after the COVID pandemics for the benefit of both hotels and guests.
