Difference between "subsidize" and "reimburse".

C

Curious about Language

Senior Member
Japan
Australia, English
Hello,
I have searched the archives but couldn't find an answer to this. My impression is that when someone is reimbursed they are paid back after paying for something, but a subsidy is when (for example) the government pre-emptively arranges for a lower price for consumers for medicine, so the consumer doesn't need to pay the subsidized part at all.

If anyone has any ideas or information I would be most appreciative!
 
    • You've got it pretty much correct! Your definition of "reimburse" is dead on. A better example of a subsidy is when the government gives economic assistance to an entire sector (such as farming) in order to make it easier for farmers to produce and sell their goods. Subsidies don't usually trickle down to the individual consumer per se, but rather help industries keep a stable footing so they don't fail. Your pricing example is close to this though, so I'm pretty sure you get the idea. Hope that helps!
     
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    Here in Australia, we have at least one example of a government subsidy that does indeed "trickle down" to the individual. The price of some essential medications is subsidised by the government. When I go to the pharmacist to buy one of these medications on prescription, I pay a reduced price. The remainder of the price is paid to the pharmaceutical company by the government.
     
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    Curious about Language said:
    Hello,
    I have searched the archives but couldn't find an answer to this. My impression is that when someone is reimbursed they are paid back after paying for something, but a subsidy is when (for example) the government pre-emptively arranges for a lower price for consumers for medicine, so the consumer doesn't need to pay the subsidized part at all.

    If anyone has any ideas or information I would be most appreciative!
    Click to expand...

    reimburse comes from the Latin bursa = [money] pouch, bag
    purse also comes from the same Latin root.

    So if you are reimbursed, the money is "put back in your purse". So obviously you have to spend it first.

    Subsidy can be any monetary grant, aid or contribution.

    The subsidy can be given at any time, and may be a reimbursement.

    Your employer could offer subsidised gym membership to staff. This may mean that the staff member pays a lower fee at the beginning.

    Or the employer may say "I'll pay half your gym membership after you've gone regularly for six months." Then the subsidy would come as a partial reimbursement.

    Or the employer may say "I'll pay the full gym membership after you've gone regularly for 12 months." The the subsidy would be a full reimbursement.
     
    Brioche and Cycloneviv, thanks for your posts.

    Thanks especially for the etymology and detailed explanation Brioche - I think I have a handle on that now. Thank you very much!
     
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