Why is There Corn in Your Coke?

Coke is made with corn syrup, not real sugar. Why is this? According to Professor Diana Thomas, part of the reason is because government policies artificially raise the price of sugar.

Although these government policies actually cost Americans approximately $3 billion each year, the laws remain. The law benefits one group of people (farmers) at the expense of another group (consumers). But because the cost to each American is so small, average Americans don’t have an incentive to combat the lobbying groups who fight to keep the laws in place.

This phenomenon is known as “dispersed costs and concentrated benefits,” and it applies in many cases when laws are passed that benefit a small group of citizens. Prof. Thomas says the only way to prevent or end this practice is to limit what government can do.

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