Interest Groups - Interest Groups - People have always been...

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Interest Groups - People have always been suspicious of interests groups’ motivations - Not necessarily equal or good; however play fundamental role in politics US and World Raw Sugar Prices o The world rate of sugar prices is much less than the US pays for sugar o Therefore, large consumers of sugars (candy manufacturers) typically are located outside of the US How the sugar subsidies work o Sugar subsidies in the US work through a complex system of loans and quotas o Sugar processors take out loans from the gov; then after the harvest, they face 1 out of 2 scenarios If they have been able to sell their sugar for more than the cost of the loan, they pay off the loan and pocket the profit If their crop is worth less than the loan, they can keep the money and just give the gov their sugar o In order to prevent the subsidies from causing oversupply, the Department of Agriculture takes two actions It maintains marketing allotments, preventing producers from growing too much It imposes a strict quota system that limits the amount of sugar imported into the country Impact of Sugar Subsidies o Sugar crops are a small proportion of the US agriculture output o While legislation calls for the program to be operated on a no-cost basis; however estimated that the sugar programs would cost 1.4 billion(relatively small) between 2008 and 2017 o Program increases price of sugar How are costs and benefits distributed
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o The higher the cost of sugar bc of subsidy program is spread across consumers o Thus $2 billion across 310 million ppl works out to $6.45/ person annually o Large consumers of sugar, such as candy manufacturers, do see their cost escalate o The benefits accrue to small number of growers and producers; they reap substantial amounts of $ from the subsidy program Politics of Sugar Subsidies o The major organization supporting sugar subsidies in the American Sugar Alliance Trys to protect Sugar Subsidiary program o Among the more vocal opponents of sugar subsidies is the National Confectioners Association Strange Bedfellows o Cane and beet growers and sugar producers ally with farm workers in favor of
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This note was uploaded on 09/14/2011 for the course POL SCI 1100 taught by Professor Overby during the Spring '08 term at Missouri (Mizzou).

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Interest Groups - Interest Groups - People have always been...

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