How congress outsourced jobs in the candy business
Walter Williams:
...
"Chicago has been home to many of America's candy manufacturers, but today they've fallen on hard times. In 1970, employment by Chicago's candy manufacturers totaled 15,000, and now it's 8,000 and falling. Brach used to employ about 2,300 people; now most of its jobs are in Mexico. Ferrara Pan Candy has also moved much of its production to Mexico.
"Yes, wages are lower in Mexico, but wages aren't the only factor in candy manufacturers' flight from America. After all, Life Savers, which for 90 years manufactured in America, has moved to Canada, where wages are comparable to ours.
"One of the ignored stories in the clamor and demagoguery over job losses, not only in the candy industry but in others as well, is the devastating impact on our industries of congressionally created 'miracles.'
...
"Their success in getting Congress to do their bidding means our domestic sugar prices are about 3 times higher than the world market price. That's a miracle for the sugar industry and its employees. But, unfortunately, the miracle story doesn't end there. We all know that for every benefit there's a cost.
"According to the Sugar Users' Association, which represents companies such as candy manufacturers who use sugar as an input, the protectionist miracle Congress created for the sugar industry has cost anywhere from 7,500 to 10,000 jobs in sugar-using industries due to higher sugar costs.
"Higher sugar costs make U.S. candy manufacturers less competitive in both domestic and world markets. Life Savers became more competitive simply by moving to Canada — it saved itself a whopping $10 million a year in sugar costs."
Walter Williams:
...
"Chicago has been home to many of America's candy manufacturers, but today they've fallen on hard times. In 1970, employment by Chicago's candy manufacturers totaled 15,000, and now it's 8,000 and falling. Brach used to employ about 2,300 people; now most of its jobs are in Mexico. Ferrara Pan Candy has also moved much of its production to Mexico.
"Yes, wages are lower in Mexico, but wages aren't the only factor in candy manufacturers' flight from America. After all, Life Savers, which for 90 years manufactured in America, has moved to Canada, where wages are comparable to ours.
"One of the ignored stories in the clamor and demagoguery over job losses, not only in the candy industry but in others as well, is the devastating impact on our industries of congressionally created 'miracles.'
...
"Their success in getting Congress to do their bidding means our domestic sugar prices are about 3 times higher than the world market price. That's a miracle for the sugar industry and its employees. But, unfortunately, the miracle story doesn't end there. We all know that for every benefit there's a cost.
"According to the Sugar Users' Association, which represents companies such as candy manufacturers who use sugar as an input, the protectionist miracle Congress created for the sugar industry has cost anywhere from 7,500 to 10,000 jobs in sugar-using industries due to higher sugar costs.
"Higher sugar costs make U.S. candy manufacturers less competitive in both domestic and world markets. Life Savers became more competitive simply by moving to Canada — it saved itself a whopping $10 million a year in sugar costs."
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