There would be three effects - first, people would pay less for food, which gives them more money to save or spend on other things.
Posted by
Roger More (aka RogerMore)
Dec 1 '08, 10:43
|
Secondly, there would be a wealth transfer from rich countries to poor countries - which is a big reason why I am in favour of removing barriers to tarde, especially in agriculture. I don't see how it affects low income earners in the US
Thirdly, there'd be people in the sugar industry who would lose their jobs. In theory, they'd call move into more productive sectors of the economy - but I know that that doesn't always work out in practice and I am all in favour of government assistance (retraining programs etc) for people who lose their jobs. But still, I'd say the benefits to US consumers and poor-country producers outweighs these costs.
|