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.