With sugar prices falling 18 percent since October, Yahoo! Finance is reporting that the federal government is in the works to intensify the welfare for the sugary industry.
The subsidy program was engineered, along with other corporatist protectionism, during the hay day of the New Deal. Sugar trade restrictions already double the price of sugar in America. It’s done for the alleged benefit of supporting American workers, but it costs consumers approximately $826,000 for every job subsidized, according to the Department of Commerce [PDF].
The sugar racket’s special interest pleading costs thousands of candy manufacturing jobs and leads to the overuse of farm lands. That means people’s ability to afford natural sweeteners faces additional challenges and farmers in developing nations struggle to compete in foreign markets. Abstruse control structures condense inscrutable power. Public choice theory would predict as much.