Article on Sugar Subsidies for Classroom Discussion

Document created by Vicky Chiu-Irion on Dec 16, 2015
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An excellent example to discuss in class when covering price controls, market efficiency, or international trade is the effect of U.S. sugar subsidies. Most Americans do not realize the high price they pay for sugar, mostly because it's such a low price to begin with. But looking at the efficiency of the industry as a whole, the costs are staggering. There are also indirect effects as bakers and candy producers pass on higher costs to consumers, or move to other countries (taking jobs with them) in order to save on input costs.

 

Sugar Price Supports Are Not So Sweet

U.S. News and World Report (Sept 5, 2014)

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