Monday, October 26, 2009

Fraud Plagues Sugar Subsidy System in Europe


This article is proof that people abuse government subsidies.  The European Union provides 50 billion Euros ($75 billion at current exchange rates) in agricultural subsidies.  The EU recently discovered truck drivers were taking a 2,500 mile route instead of the direct 900-mile in order to receive more money in subsidies.  

1 comment:

David Khoo said...

When there are incentives, or rather, free money, everyone wants it. It hard and costly to plug all the possible loopholes in a system. This sugar example is just one example of how government subsidy programs are abused. A bigger issue domestically is health care fraud that costs the government and corporations billions each year. The costs of such fraud is then passed downed to us consumers in the form of higher taxes and insurance premiums. In the end, it is society that loses.