Thursday, May 22, 2008

Rising Food Prices Got You? Maybe It's Time To Rethink Ethanol

Don't mind me. I am just going to say, "I told you so", one more time.

A year ago, I first called attention to what a bad idea promoting ethanol as a panacea to the current energy crisis. In fact, I didn't even like it as a supplemental solution. Even as late as two months ago, I posted a caution on this. (Read: Here and Here, for both accounts.)

Why would I have made such a bold prediction at a time when the bandwagon was full of support? Because I applied a simple economic theory to the equation and couldn't come up with anything, but negative outcomes. That theory is nothing more than, the law of supply and demand.

I am not wanting to gloat or anything, in fact I wish I had been wrong. But recently, we have seen some of the outcomes I predicted would come to pass. Take a look at this recent article from the Indy Star.

Hoosiers are caught between concerns about rising fuel costs on the one hand and rising food costs on the other.

After years of generally favorable feelings toward ethanol as a "green" alternative to foreign oil, consumers are asking whether the corn-based gasoline additive is driving up food costs.

And some in Congress are now calling for an end to federal ethanol subsidies, which sounds like fighting words to many Hoosiers.


Living in Indiana, I certainly don't want to jeopardize the health, well-being, and economic success of those that grow corn. But I cannot feel sorry for those that did not think this thing through, before getting things stirred up. Now we have rising food prices in all aspects of the industry. Not all of it is due to subsidizing production of corn for use as fuel, but some of it is. And while much can be attributed to higher costs of gasoline in the transportation sector, it cannot be overlooked that ethanol has contributed more than its share.

Once again, thank the environmentalists that will not let us drill and steered the bus into another wall, by promoting junk science. Then, thank the corn lobby for jumping on the same bandwagon usually occupied by academics and leftist moonbats that have no other goal, but promoting the failure of market capitalism.

9 comments:

Greg said...

Then, thank the corn lobby for jumping on the same bandwagon usually occupied by academics and leftist moonbats that have no other goal, but promoting the failure of market capitalism.

I think they've succeeded. I was wondering what country I was in yesterday as I watched "I Really Am A" Dick Durbin grill oil execs over their companies' "excessive" profits.

This would be a good spot to remind everyone that Dick compared KSM and others held at GITMO to the victims of the Holocaust (though he later apologized for, but did not retract, the statement).

Rocket said...

But we knew that last year when we learnt that it would take half of the arable farmland in England to fuel Virgin Airlines for one year in Ethanol.

LASunsett said...

//I was wondering what country I was in yesterday as I watched "I Really Am A" Dick Durbin grill oil execs over their companies' "excessive" profits.//

Quite the Stalinistic purge, wasn't it?

LASunsett said...

//But we knew that last year when we learnt that it would take half of the arable farmland in England to fuel Virgin Airlines for one year in Ethanol.//

Amazing. Yet, the lobby is still lobbying.

Mustang said...

Actually, LA . . . this (along with the food-shortage riots in the Middle East and North Africa) could be a mere figment of your imagination.

Excellent post, my friend; now let me encourage you to look forward to my next post. Tomorrow I will demonstrate the intelligence of a democratic senator as he attempts to instruct us how to solve gas shortages and high costs. You may even join the DNC.

Or not.

LASunsett said...

//You may even join the DNC.

Or not.


I'll take "Or Not" for $1000, Alex.

A.C. McCloud said...

I think they've succeeded. I was wondering what country I was in yesterday as I watched "I Really Am A" Dick Durbin grill oil execs over their companies' "excessive" profits.

Did you see Maxine Waters' display in the House? Must-see-TV for sure.

LASunsett said...

//Did you see Maxine Waters' display in the House?//

I heard about it. On my way home from another long day, Neal Boortz was talking about this. He said Congress members will probably not submit to IQ testing. But if they did, he's willing to bet she'd have the lowest of anyone in Congress.

But wait, that's she's not the only one. There may be a runner-up.

//Did you see Maxine Waters' display in the House?//

I heard about it. On my way home from another long day, Neal Boortz was talking about this. He said Congress members will probably not submit to IQ testing. But if they did, he's willing to bet she'd have the lowest of anyone in Congress.

But wait, she's not the only one. There may be a runner-up.

Meet Paul E. Kanjorski (PA-11).

Greg said...

AC & LAS: the funniest part of that charade was that the woman couldn't think of the word she wanted: "nationalize". She had the concept down at least (communism).