Sweet Deal for A Few, Not For Most
Thanks to the Washington Post (requires simple registration) for pointing out that restrictions on the ability of Americans to import sugar, “protecting” the domestic sugar industry, is killing the American candy industry. Americans are importing sugar into the U.S. in the form of … candy that’s been manufactured in Canada and other countries.
Protectionism doesn’t “save American jobs.” It just changes the jobs that people do — and makes the great majority of us poorer.
The GAO said this program cost the US $1.9 billion in 1998.
http://www.gao.gov/new.items/rc00126.pdf
Justin, thanks for the link. I have used this paper both in professional research & in teaching; it’s an excellent analysis, and worth reading.
I’m constantly ranting to people about the sugar importation quotas. There are so many products in this country that have switched to using High Fructose Corn Syrup (a product that is even cheaper due to government subsidizes for corn) as a replacement for sugar. With studies linking consumption of HCFS to increased risk of diabetes, I like to say that the government is giving us diabetes. 🙂
I was told by an ag economist who studies these things that in Canada & elsewhere outside of the U.S., soft drinks are generally sweetened with sugar (as opposed to HFCS in the U.S.) The switch to HFCS in the U.S. was entirely a response to our artficially high sugar prices.