Home > General, News, Political, Politics, Pre Pulse Ramblings, Society > Ethanol’s Grocery Bill – WSJ.com

Ethanol’s Grocery Bill – WSJ.com


Ethanol’s Grocery Bill – WSJ.com.

There is nothing good nor right about Ethanol and is yet another classic example of government interference in the marketplace.  So far, nothing burns as cheap, effectively, or with less “footprint” than regular ole oil-based gas.  Ethanol is a disaster of unmitigated proportions and hurts the environment, and our wallets, far more than helps it

  • Ethanol cannot be piped to the refinery, it must be trucked.  The trucks hauling the corn cannot fit as much as say a tanker truck or a pipeline could haul oil.
  • It requires an awful lot of fertilizer, which is made out of oil.
  • It uses up huge tracks of land, that could have been used for other agricultural production
  • It uses up gallons upon gallons of water..corn is a thirsty crop to grow
  • It raises the price of food/corn by a significant margin (see below)
  • It does not burn as efficiently as oil-based gas…it barely breaks even with the amount of energy it takes to create

Ethanol survives only because of government subsidies…not unlike China subsidizes the price of gas in their country (and thus one of the reasons why we have high gas prices; China’s consumers did not have to feel the impact of gas prices).  Without subsidies, the price of Ethanol (as a result of the cost of production) would be significantly higher than gas and thus would not survive on the market.

Producers of Ethanol are what we call “political entrepreneurs”, which are part of the problem we face in America today…those companies that come to Congress asking for handouts, subsidies, front money, and ad nauseum indeed represent the dark side of capitalism (and not what a Capitalist would advocate producers do).  Political entrepreneurs, since they receive a handout/free money/do not have to compete, give the consumer an inferior product.  Because competition doesn’t’t exist for political entrepreneurs, they don’t have to reform, innovate, save, cut costs, or develop ways to more efficiently and effectively produce (and a host of other evils) the consumer (and taxpayer) is stuck with a commodity they may not want, demand, or is poor quality.

We need more market-based entrepreneurs…we need the government to get out of the business of business.  We do not need nor want Ethanol…at least US produced corn-based Ethanol.  Sugar based Ethanol would be viable, or methanol perhaps…but not what we’re forced to consume now…

Government continues to cause our nation’s problems…

Philvis

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