Terrible Trade Policy, Dumber Defense



You’d have a hard time finding a worse example of terrible trade policy than what the U.S. does with sugar. The “elaborate system of import quotas, price floors and taxpayer-backed loans ” is blatantly designed to protect domestic sugar producers from foreign competition.

As bad as the policy itself is, at least you would think its defenders could provide a defense of it that didn’t insult the intelligence of anyone with a bit of economics knowledge. For example:

Without the program, the industry says, the U.S. economy would lose tens of thousands of jobs and become dependent on foreign sources to meet the nation’s sugar needs.


(1) would lose tens of thousands of jobs Like, the same way you lose your keys and can’t find them again? These sugar growers will do what? Sit around watching TV for the rest of their lives? They really can’t do anything else besides grow sugar? Is growing sugar such an amazingly low skilled job that its labor couldn’t do any other kinds of work?

(2) become dependent on foreign sources to meet the nation’s sugar needs Shocking! What a disgrace to import foreign sugar! And of course, once a country imports foreign sugar, if the foreign stuff ever runs out or becomes more expensive, there’s no way it could be ever grown again, right? It’s amazing to think that anyone could lose a moment’s sleep over “foreign sugar dependence.”

Why not just make an honest case?

“Eliminating these subsidies will cause a short-term labor disruption. Some people in the sugar industry will be jobless during that transition. Foreign sugar is much cheaper, so we won’t see it produced in the U.S. anymore. We think it would be better to have everyone in the U.S. pay more for sugar and keep this industry alive domestically. We don’t really care that this makes us all a little poorer, and takes away an opportunity for someone in another country to produce something they are really more efficient at producing than we are, because they are foreigners.”

It’s an ugly, mean-spirited and pessimistic case for the sugar producers’ protection, but at least we could respect the honesty behind such a defense. Something tells me, we’ll never hear anything like that.


  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: