Newscom
It was recently reported that the federal government is considering buying 400,000 tons of sugar to prop up prices for sugar producers. The government would then sell the sugar at a loss of 10 cents per pound, costing taxpayers $80 million.
Conventional wisdom for investors is “buy low, sell high.” The government proposes taking the opposite approach, buying sugar at an artificially high price and selling it at a loss. With this type of economic policy, is it any surprise the government is running deficits as far as the eye can see?
The government guarantees a minimum price for sugar processers and inflates U.S. prices by restricting sugar imports. This type of crony capitalism rewards industries based on who has the most powerful lobbyists, and it undermines our country’s economic freedom.
