Marco Rubio’s Sweet Protectionism (He’s got a sugar problem)

sugar cc

Sugar is bad for Americans in more ways than one. It makes everyday folks fat, but it makes politicians even fatter.

(From Reason)

Here’s how the sugar racket works: The federal government offers loans to sugar cane and beet sugar processors, who in turn agree to pay sugar growers a minimum price set by the USDA. The goal is for processors to obtain a market price for their sugar that is sufficient to pay back the loan. But because the loans are “non-recourse,” if the market price for sugar drops, processors can instead forfeit to the USDA the sugar they put up as collateral.

To prevent sugar processors from offloading sugar onto the USDA—and to shelter the processors from lower-cost foreign competition, further ensuring they’ll receive an artificially inflated price—the federal government imposes a two-tier system of tariff rate quotas that serve as a sugar import barrier.

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