CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Monday, October 13, 2008
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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12 Comments:
Which, of course, is a contributing factor (along with subsidies) to why our soft drinks typically use high-fructose corn syrup instead of sugar, like most people in the world.
I wrote to Sen. Feinstein, let's see if she responds.
We preach FREE TRADE to the world, but we don't implement it as much as we should.
Let's bring back the pro-FREE TRADERS!!!
Amit
This is why some like Mexican Coke which uses sugar cane "real" sugar instead of fructose.
http://www.signonsandiego.com/uniontrib/20041109/news_1b9mexcoke.html
Price supports for sugar. Protecting the beet farmers.
Was it worth it?
Don't ask Chicago. We were the candy producing capital. Brach's, Tootsie Rolls, Lemonheads, Fannie May....
Coke and Pepsi produce a sugar-based version of their soft drinks during Passover for areas of the country with large Jewish concentrations. Corn is forbidden during this time, as is corn-based sweeteners. You can probably find them now on Ebay if you want to snag a bottle. If you are younger than 30 and don't remember when they used sugar, give it a try. They are typically more expensive due to sugar tariffs as pointed out by Mark, as well as only limited demand.
Colin and others, if it were that simple. When farmers were getting 18 cents for sugar in the US the UK was paying 25 cents to their trading partners and the EU has, I believe, was paying the highest subsidies to their beet growers in the world. The world sugar market is distorted by protection, causing price instability and leading to dumping. US soft drink bottlers switched to HFC en mass in 1973/74 when a world shortage sent prices spiking as high as 63 cents a pound.
The typical price of world sugar is really surplus sugar over and above the various price guaranties and marketing arrangements between producing countries and consuming countries. Rarely is the world price a price that any country could produce sugar on a sustainable basis.
Getting the US, the UK, EU, and Japan and now India to come to terms with Brazil, Australia, and hordes of marginal producers; well good luck.
Anon@ 8:16,
Just because other countries use protectionist measures doesn't mean we should. Whether the EU, Brazil or anyone else subsidises sugar or not does not change the fact that we would benefit more by not subsidizing and therefore paying a lower price. The ones being harmed would be the ones forced to pay a higher price via subsidies.
Just like we only harmed ourselves when we instituted steel tarrifs a few years ago, and then the cost of manufacturing for our companies went sky-high. We helped one small segment, to the detriment of the whole. Sugar tarrifs do the same thing, regardless what other countries do.
Was it worth it?
Don't ask Chicago.
Sen. Obama says it's worth it. That's why he's consistently voted against easing the sugar quota/guaranteed loan program. Illinois has a lot of corn farmers to subsidize, remember.
You can get Dr. Pepper with real sugar from Texas.
http://www.dublindrpepper.com/
google archer daniels midland,,a case study in corporate welfare.
also The Sugar Problem...the dangers of refined sugar.
Ethanol .. check it.
see myspace
((((((BATman))))))
Is this why Jones Soda is so damn expensive?
Kraft's LifeSavers plant in Holland, Michigan, moved to Canada in 2003 due to the high US sugar prices. Most flavors of LifeSavers contain 90% sugar by weight. When Kraft pays 12 cents/lb. instead of 22 cents/lb., the savings is significant. I read information from the US sugar producers trade group that states the world price of sugar is really a myth, but apparently it was real to Kraft.
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