Sugar Is Sweet, But Maybe Not at These Prices

Hoping to surprise your valentine or treat yourself with something sweet this year? That’s the traditional gift for 57 percent of consumers, according to the National Retail Federation—an organization with a better spy network than Santa. Another V-Day favorite is dining at a restaurant or getting takeout.

But before you make that reservation or head to the store, have you looked at the prices lately?

Across most parts of the economy, the rampant inflation of the last few years is finally cooling off, but food prices continue to rise.

One often overlooked culprit is the federal sugar program. Washington keeps a tight rein on the supply of sugar available in the United States for everyone from home bakers to major chocolatiers. This keeps prices artificially high. American consumers and food makers end up paying more than double what others pay on the global market. And with food costs already far higher than they were pre-pandemic, this is really adding insult to injury for household budgets.

Alternatives

Since Congress can’t address this issue before Valentine’s Day, the R Street Institute is pleased to provide some smart alternatives to the usual chocolate hearts and prix fixe menus.

• Nix the conversation hearts for messages written on pebbles. No one will notice the difference because people already expect a gritty, chalk-like consistency.
• Help keep your partner healthy with a gift of N95 face masks. Cut out little hearts to make them holiday appropriate.
• Make coupons for things we all hate like answering the door, making a phone call, or inputting resume info into an application after already attaching the resume.
• Embrace experiences, not things. Go together to the recycling center and finally get rid of all the glass bottles that have been accumulating ever since your building said to stop putting glass in the blue bins.
• Housing costs are very high in many places. Give your significant other an equal amount toward their rent or mortgage that you were planning to spend on their Valentine’s gift. Covering a co-pay or a dental cleaning might also be appreciated.
• Do something for your partner that they’ve been putting off for a long time, like folding and putting away the clean laundry or replacing the windshield wiper blades on their vehicle.

Conclusion

Looking ahead, it would be best if Congress could address this ongoing issue. The damaging effects of the sugar program go far beyond making some holidays a little less sweet. In October, the Government Accountability Office (GAO) found that the sugar program costs consumers $2.5 to $3.5 billion a year. Confectioners and other food manufacturers that use sugar have also experienced significant job losses at a time when less-sugar intensive industry peers have seen job growth. 

The current federal sugar policies create a wholly unnecessary burden that benefits a small handful of producers. Congress should take steps to ensure the domestic sugar supply isn’t exacerbating the challenges consumers and food makers already face.