Give Me Some Sugar, Baby! Crony Capitalism in the Sugar Trade

In case my recent tour of a cacao plantation didn’t clue you in, yeah, I’ve got a sweet tooth.  So I found the Heritage Foundation’s recent chart of the week troublesome.  The U.S. sugar industry is fairly minor in terms of overall agricultural production.  But they’re big spenders when it comes to lobbying.  Why?  Trade barriers to sugar imports!  Says, Heritage:

Trade barriers artificially inflate prices by implementing quotas that limit the amount that food manufacturers and consumers can buy from other countries. Riley explains: “If a bakery or a candy company wants to import more sugar than is allowed under the government’s quota, it must pay a prohibitive tariff of 15.36 cents per pound for raw sugar. At current prices, that works out to a whopping 62 percent tariff rate.”

The U.S. sugar policy also costs taxpayers more every time they choose to buy their favorite candy, cereal or any other sugar-containing product. Studies by the American Enterprise Institute and Sweetener Users Association peg the cost to consumers between $2.4 billion and $3.5 billion per year.

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About Mystic Cowgirl

I worked overseas in the aid game for longer than I'd like to admit and learned several important things: 1) Third World countries aren't poor because America is rich. They're impoverished due to socialist governments that provide neither rule of law nor basic infrastructures; 2) These socialist governments redistribute wealth from taxpayers to the government workers. There's no benefit to the poor or downtrodden, and certainly not to the general welfare in terms of infrastructure improvements. 3) America is moving toward the Third World model. Rule of law has been subverted because equality under the law is disappearing as special interests carve out exemptions to regulations and special favors under the law. The redistribution of wealth to government began decades ago -- total compensation for government employees now outpaces salaries in the private sector.
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