The Cost of Sugar Subsidies

Andre Rougeot / December 06, 2010

Even in a season characterized by candy canes and cookies waiting for Santa, protectionism, specifically the U.S. sugar program, hurts American consumers and workers. The U.S. sugar program provides a classic example of a special interest group benefiting from political connections, to the detriment of American consumers.

The sugar program imposes trade barriers that force American consumers to pay approximately double the world’s sugar price. The jobs “saved” by the program come at a high price. U.S. consumers pay an extra $826,000 for each sugar production job saved. Sugar farmers, often collectively known as “Big Sugar,” contribute extensively to political campaigns, with the nine main sugar farms or refinery groups contributing nearly $1.5 million to candidates in 2007 to maintain this overt corporate welfare. (more…)