AUSTIN – The Heritage Foundation released a report today by TPPF Senior Fellow Mario Loyola titled, Sugar Shakedown: How Politicians Conspire with the Sugar Lobby to Defraud America’s Families. In the report, Loyola investigates how sugar subsidies in the farm bill increase costs and harm American consumers.
“The basic idea of the sugar program is the same as that of any cartel: to raise prices well above competitive levels by restricting output,” Loyola writes.
He continued: “The program is also grossly regressive because any increase in food prices hits poor families hardest. With the deadweight loss from monopoly and cartel pricing, the sugar program costs the public significantly more than it benefits its beneficiaries—all so that Members of Congress can escape accountability for the costs of a subsidy that would be politically impossible if they were honestly reported.”