November 24, 2005

NOTHING COSTS MORE THAN IT USED TO:

Sugar prices to fall as EU ends 'rigged' market (Anthony Browne, 11/25/05, Times of London)

BRITAIN has brokered an agreement to reform the last remaining fully protected area of European agriculture, cutting sugar prices, phasing out quotas and bringing an end to sugar mountains.

The first reforms since the postwar period to the EU’s much criticised sugar regime will cut prices by 36 per cent, destroy 100,000 jobs in Europe, end sugar farming in countries such as Ireland and Greece, and lead to economic devastation for Europe’s former colonies in Africa and the Caribbean, which also benefited from the rigged market.

Posted by Orrin Judd at November 24, 2005 6:36 PM
Comments

...destroy 100,000 jobs in Europe...

This is wrong in so many ways...

First, is Mr. Browne specifically admitting that the EU member states, with their superior Euro cultures, can't effectively provide new job opportunities for workers made redundant in the sugar mines of Europe ?

If so, it's stating the obvious - per-capita GNP in the Eurozone is expected to shrink next year.
(Thanks, ECB !)

Secondly, if 100,000 people are thrown out of work, did they have real, productive jobs to begin with ?

If sugar prices fall by 1/3, that should result in a higher demand for sugar, and consequently for workers in the sugar industry - IF, that is, the number of current workers in EU sugar bore any close relationship to the number required to efficiently produce sugar.

That job cuts are expected in the face of rising demand for production tells us that those workers aren't a vital part of sugar production, but instead beneficiaries of a jobs programme.

Posted by: Michael Herdegen [TypeKey Profile Page] at November 25, 2005 6:31 AM
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