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1、2col.qxp6/28/20057:54PMPage34¢COVERSTORYSugarDaddiesHowsugarinterestsripoffAmericaandharmthenationalinterestJASONLEESTEORTSINahalloffameforcorporate-welfarequeens,thesugarindus-ingthegovernmentkeepssugarpricessufficientlyhigh).Thistrywouldoccupyaplaceofspecialhonor.Fordecades,powerfulargumentissound
2、ifoneregardsthesugarprogramasaquestionsugargrowershavegottenpoliticianstoenrichthemwithapro-offederalbookkeeping,butthatisonlybecause,inthiscase,thetectionistschemethatinflatesdomesticsugarpricestothedetri-governmentdoesanuncharacteristicallyefficientjobofplunder-mentofAmericanconsumers,Americanmanu
3、facturers,Americaningtaxpayerstopayoffaspecialinterest:Itsimplycutsitselfoutfarmers,andtheAmericaneconomyasawhole.Inthatcongeriesasmiddleman.EachtimeyoubuysugaroraproductmadewithofabsurditiesknownasU.S.farmpolicy,sugar’ssweetdealsugar,thedifferencebetweenthepriceyoupayandthelowerpricestandsoutasperh
4、apsthemostdamagingandleastdefensiblepro-youwouldpayabsentthesugarprogram’sdirigismecanbegram.Now,morethanever,itneedstobescrapped.thoughtofasasugartax.Unlikemosttaxes,thistaxneverfindsitsTheprogramallowssugarprocessorstotakeoutloansfromthewaytogovernmentaccounts.Instead,itpassesdirectlyfromyourUSDAb
5、ypledgingsugarascollateral.Theloanrates—18centspockettothesugarindustry’sprofitstatements.perpoundforcanesugar,22.9centsperpoundforbeetsugar—areAGAOstudyfoundthat,between1989and1991,thesugartaxsignificantlyhigherthanaverageworldsugarprices.TheseloanscostAmericanconsumersanaverageof$1.4billionperyear
6、.Bymustberepaidwithinninemonths,butprocessorsalsohavethe1998,thatnumberhadrisento$1.9billion.Othercostsareborneoptionofforfeitingtheirsugartothegovernmentinlieuofrepay-bymanufacturerswhousesugarasaninput.Facedwithhighingtheirdebt.domesticprices,someconfectionershavemovedtocountriesThisarrangementeff
7、ectivelyguaranteesthattheprocessorswithoutsugarpricesupports,suchasCanada.Othershavesimplyreceiveapricefortheirsugarthatisnolowerthantheloanvalue:shutdown.AstudycommissionedbytheSweetenerUsersIfprices
