Have a Coke and a Smile
You guys in the US ever go to Mexico and drink a Coke? Remember how good it tasted compared to American Coke? That’s because it’s made from sugar, and Coke in China is also made from sugar. In the United States and other western nations a chemical called “high fructose corn syrup” is used instead. Why? You can thank America’s first socialist president, Franklin Delano Roosevelt, for that. With the introduction of federal price supports for agricultural goods, which began in earnest under his administration, we use tax money and tariffs to artificially inflate the cost of countless goods. Sugar is the best example, it’s an order of magnitude more expensive than it would be if left to the free market. So sugar producers get subsidized to keep their products worth making, and the consumer pays significantly higher prices at the grocery store. (I believe that sugar is about ten times more expensive than it would be if market forces, not government, were setting the price.)
So why high fructose corn syrup? Simple, it’s cheaper than sugar. It wouldn’t be if there were no price supports for sugar, but the government has made it so that sugar is artificially high, creating a demand for a cheaper alternative. The main group lobbying for these high sugar tariffs is a corporation called Archer Daniels Midland. They have no sugar factories, but they spend more money lobbying in favor of price supports than any other group.
Why should ADM, a company with no sugar factories, care so much about sugar tariffs? It should be obvious—ADM are the makers of, among other things, high fructose corn syrup. There’s absolutely no reason that Coca Cola couldn’t be made with sugar, as it used to be, except for the artificially high price caused by government interference in free trade.
And some people wonder why I hate government. I think I’ll go drink a Coke with sugar in it.
Oh, and for those of you who have weight problems, I am absolutely convinced that one of the reasons for the epidemic obesity issues that are currently plaguing the west is the switch from sugar to high fructose corn syrup.
Update: Since this appears to be such a hot topic, here’s a couple of additional links to read up on. Here’s a 1995 article hosted on Opensecrets.org.
Our story begins with the trail of political money in Washington—the millions of dollars given in myriad ways to finance political campaigns and influence national policy-making. The trail continues to Florida, where the federal government support program has enriched a few families at the expense of all consumers while inflicting unprecedented environmental damage. This study goes well beyond the simple examination of the cost of sugar price supports, demonstrating that at the end of the road, the public is holding the bag—paying for everything from higher sugar prices to the multimillion-dollar cleanup of the Everglades.
Over the past decade, the Center for Responsive Politics has documented the ever-increasing flow of dollars from corporate interests and wealthy individuals to the campaign coffers of members of Congress. As the cost of elections has steadily increased, these contributors have become ever more important to lawmakers—incumbents and newcomers alike. None among them is a more astute player in the game of “money politics” than the sugar industry.
Since 1979, sugar-related interests (sugar cane, beet, and corn sweeteners) have invested more than $11.9 million in the campaigns of candidates for federal office and political parties. One estimate has perhaps another $1.3 million invested in state lawmakers in Florida by pro-sugar forces. Sugar interests have fielded battalions of lawyers, lobbyists, public-relations specialists, and scientists in the nation’s capital and in Tallahassee to maintain the status quo.
And here’s a 2006 article from the Competitive Enterprise Institute.
As is true with many government programs, the sugar program’s benefits are concentrated and the costs are diffuse. It principally benefits large sugar cane producers in Florida and Louisiana and sugar beet farmers in 14 upper-Midwestern and Western states. For those who benefit, the rewards are significant—the General Accounting Office estimated in 1991 that 42 percent of the sugar grower benefits went to only 1 percent of all sugar farms, or 150 farms. Some 33 sugar farms received over $1 million in annual benefits.
No wonder the sugar industry wants to keep such a sweet deal.
This is why I always get a chuckle when many people in the US assume that corporations support the generally conservative idea of limited government. (Though it’s debatable whether this is still a conservative ideal at all, given the profligate spending of the Bush years.) Corporations love huge, massive, intrusive government, because it enables them to use government’s powers of coercion to manipulate the markets to their advantage.
For more info, just go to Google and search for sugar price supports.
