Monday, August 31, 2015

Subsidizing sugar

Marco Rubio believes that we need to continue to subsidize sugar growers in the U.S. Windsor Mann writes at National Review,
Asked this month about his support for sugar subsidies, Rubio said he would eliminate them if “the countries that export sugar into the U.S. get rid of theirs as well, and here’s why: Otherwise, Brazil will wipe out our agriculture and it’s not just sugar.”

If we eliminate our sugar subsidies first, Rubio warned, “other countries will capture the market share, our agricultural capacity will be developed into real estate, you know, housing and so forth, and then we lose the capacity to produce our own food, at which point we’re at the mercy of a foreign country for food security.”

Mann explains,
The federal sugar program, which consists of price supports, import quotas, loan guarantees, and other anti-market contrivances, costs $1.9 billion annually, according to an estimate by the GAO. The Coalition for Sugar Reform, which advocates the repeal of sugar subsidies, says the program has cost $15 billion since 2008. American consumers must bear these costs for the privilege of buying sugar at more than twice the world rate. The benefits, meanwhile, accrue to the fewer than 4,500 domestic sugar producers.

In 1934, the U.S. government decided to subsidize sugar on a “temporary” basis. As often happens in Washington, at some point in the intervening decades, “temporary” came to mean “forever.” The result is a system in which the less-than-1 percent enrich themselves at the expense of the 99-plus percent, thanks to unremitting bipartisan support.

...We have as much reason to grow our own sugar as Lithuania does to make its own cars: none. The fact is that other countries produce certain things more cheaply and efficiently than we do. That is why we trade with them. If only our government would butt out, we could buy sugar even more cheaply.

The Cold War is over, but the excuses for sugar subsidies persist. If protecting Americans’ lives were the goal, Rubio would be calling for a ban on sugar, not a subsidy. After all, sugar kills more Americans than terrorists do. According to a recent study published in the journal Circulation, sugar-sweetened beverages account for one in every 100 obesity-related deaths. Each year an estimated 25,000 Americans die as a result of consuming them.

Obesity causes deaths. Sugar causes obesity. The government subsidizes sugar. You subsidize the government. You subsidize death. The terrorists win.

This syllogism makes at least as much sense as what Rubio said.
Read more here.

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