Please respond to a classmate’s post: Sweet deal for who?
a. Comment on the sugar subsidy available to US producers. What is its history? How does this issue relate to the week’s topics?
The history of sugar subsidy in the US could be traced back to 1789 when a tariff was passed on sugar. The protectionism that can be seen today started in the year 1934 when the Jones Costigan Amendment was passed. The Amendment ensured that sugar farmers were assisted by the government. In 1981, a program was created in the Farm bill where sugar farmers could be given loans. If the prices were low, the sugar farmers could default on the loan. This ultimately relates back to this week’s topic due to the fact that a protection plan was put into place for American farmers as a form of protectionism. This also relates to protectionism by not allowing globalization for sugar production due to tariffs and trade barriers.
b. Were you aware of this? Were you surprised? Speculate on why nobody seems particularly upset about paying more for a product that practically every household uses
I have to admit I was surprise by this subsidy that the sugar farmers receive. What I find interesting is that sugar prices in the country is almost double that of the rest of the world. The government is supporting policies that affect the citizens and not in a positive way. I’m curious to know of how many people are actually aware of this and haven’t gear much noise in the media neither. I’m that if this topic was more public the majority of people wouldn’t be in favor. People aren’t upset because they don’t know! Sugar is used in almost every household in America and consumers will pay almost anything when it is something they require for their day-to-day lives.
Not too sweet …
References:
Smith, Vincent H. “Opinion: The U.S. Spends $4 Billion a Year Subsidizing ‘Stalinist-Style’ Domestic Sugar Production.” MarketWatch, MarketWatch, 26 June 2018, www.marketwatch.com/story/the-us-spends-4-billion-a-year-subsidizing-stalinist-style-domestic-sugar-production-2018-06-25.
