Question

Many people feel that the sugar program is still around only because of political pressure. Given the following hypothetical data:

Growers in the U.S. receive $2 billion per year in income supports

It costs $40 million to have a high probability of successfully lobbying Congress to continue getting supports

There is the equivalent of 12,000 full time sugar producers

People in the U.S. consume 80 pounds of sugar per year

There are 250,000,000 people in the U.S.

The price of raw sugar for producers is about $.22 /lb in the U.S.

The world price is about $.11/lb

How can all of this inforomation be shown graphycally?

Answer 1

Solution

Growers in the US receive $2 billion per years in income supports

$40 million to lobby Congress

12,000 full-time farmers

People in the US consumes 80 pounds per year

250 million people in us

Price of Sugar is $.22/LB in us

World price is $.11/LB in us

The problem is that US citizens are losing money in 2 ways, first they are giving subsidy to growers then they are getting sugar at the much higher price of $.22 per pound so the subsidy is actually getting wasted.

250 M * 80 = 20000 million pounds * 0.22 = 4400 or 4.4 billion dollars are spent on buying us sugar

This is purely an employment programmed nothing else.