“Big Sugar,” is the name sugar farmers are collectively called, and does D.C. love them. “Big Sugar,” contributed $1.5 million to congressional candidates in 2007, and I am certain a lot more in years since. “Big Sugar,” has cost thousands of jobs in America, and it has been estimated that for every job saved by government price supports and allocations on sugar, U.S. consumers pay an extra $829,000 in increased costs of products containing sugar, which, they purchase and consume. Congressional recipients of “Big Sugar” bribes, always vote against eliminating sugar reforms, which would mean lifting government quotas, controls and restrictions. It’s really unbelievable what is going on in the industry, thanks to D.C.!
Hershey alone, closed plants in Colorado, California, and Pennsylvania, and moved them to Mexico and Canada, where sugar prices are half what they are in the U.S., thanks to the “Big Sugar” lobby. Chicago, once the candy capital of America, has closed factories and lost thousands of jobs. Fanny May, and Brachs closed up and moved to Mexico, and not because of labor costs. Brachs fired 3,000 workers. In Michigan, Kraft fired 600 when it moved its ’Life Savers’ plant to Canada, where sugar costs half as much as here.
Guess what? Good old FDR imposed sugar import quotas in 1934, which vested huge amounts of power to the few sugar growers in America, and this twisted, stupid, fraud, has continued over the years, with various adjustments and changes, but always to the benefit of sugar growers and to the detriment of the American consumer. It has been estimated that “Big Sugar” costs America $3 billion a year in increased costs of candy, cereals, and anything containing sugar. Or put it another way, for each sugar grower, America pays an additional $3 million in costs of products. But NOT Pepsi or Coke! In 1984, Pepsi and Coke had a belly full, and switched from sugar to high-fructose corn syrup, and this meant 500,000 less tons of sugar used each year for their products. It is now possible to buy Coca Cola made in Mexico with real sugar, and the taste is appreciably better.
A smart Congress abolished sugar quotas in 1974, but under Reagan (!) they were re-imposed in 1982. The effects of Reagan’s placing import quotas on again, cut off imports from Caribbean nations, costing them $800 million in revenues, so they began growing marijuana, and then the Drug Enforcement Agency hired lots of full time agents to stop the marijuana from entering here, but of course that hasn’t worked. Brazil retaliated by reducing its purchases of U.S. grain.
As happened with prohibition, smuggling of sugar became highly profitable, and a government program titled “Operation Bittersweet,” caught 30 companies saving money, trying to stay open by smuggling sugar, so they could keep their factories open. Didn’t work, so they left for Mexico and Canada.
No matter what Congress does, it seems, government grows, the deficit grows, the dollar grows weaker, factories close laying off workers, and bureaucracy sprouts like weeds in a garden.
From the August 11, 1900 Gladstone Kibosh: “Chas. J. Whip is suffering from indigestion, and if a change don’t set in shortly, Gladstone’s citizens will be called upon to contribute money to defray the expenses of a first class funeral. A week ago, Charles pawned his false teeth to Mason and Mason, of the Angel of Mercy saloon, for a gallon of Demon’s Delight whiskey.”