Posted by guest blogger Locutisprime.
New Ethanol Studies: Little Effect on Gas Prices, Significant Pressure on Food
WASHINGTON, June 23 /PRNewswire-USNewswire/ -- Two studies released
today show that federal ethanol mandates have placed significant pressure
on food prices, while any effect on gasoline prices has been "almost too
small to measure."Dr. Thomas Elam of FarmEcon LLC, and Keith Collins, former chief
economist of the U.S. Department of Agriculture, submitted their new
analyses to the Environmental Protection Agency (EPA). Today is the end of
EPA's public comment period on a request from Texas Gov. Rick Perry to
partially suspend the Renewable Fuels Standard (RFS) in light of serious
economic harm caused by the current policy."The 2008/2009 increase in fuel production made possible by the RFS is
almost too small to measure against the global energy market, but the
effects on food prices and security are huge," Elam notes. "The U.S.
government should re-examine and reduce the RFS in light of the damage it
can do to our food production capacity and the overall welfare of the
country."
Knee jerk reactions, usually result in banged and bruised shins and the very real potential for long term injury. Such is the case with the politically correct march of American energy policy and reactionary government induced programs that attempt to prevent the sky from falling. Chicken Little's unsubstantiated fears of global warming has revealed what truly happens, when the realities of political driven policies come to roost with the facts.
Ethanol is at best a feel good supplemental fuel, that provides little benefit aside for the appearance of having done something to reduce the use of fossil fuels. And the results of pursuing partisan bias as it concerns science, has now revealed itself for the real danger that has been created for America's economic future.
At a time when real weather problems such as 100 year floods in the mid west and an increased demand on corn crops globally has severely impacted America's corn crop, we now see the reality of failed feel good policies on the over all picture of our economy, artificially increased inflation and our food supply. Not only has the now revealed unmeasurable benefit of the addition of ethanol to America's fuel crisis been revealed by this sideshow waste of effort, but we have also jeopardized our supply of a mainstay crop and put ourselves into a position of competitive global inflation on something that we have traditionally had a bounty of.
The only thing worse in my opinion than questionable and unproven science, is questionable and unproven public policy. Especially when it is driven by politically correct fear mongering and Utopian socialist ideologies. The only tangible benefit that the mad rush to produce ethanol as an alternative fuel has really produced, is in actuality a case study in the definition of failed efficacy and government forced perspective once again revealed as folly.
“The only tangible benefit that the mad rush to produce ethanol as an alternative fuel has really produced, is in actuality a case study in the definition of failed efficacy and government forced perspective once again revealed as folly.”
Spot on! Let’s stop this madness before it gets really ugly.
One benefit of the high gas prices hopefully will be the awaking to the sobering realization that while we need real solutions to the problem, corn is not one of them. The effect on food prices and shortages has been quick and staggering.
Wake up Washington, do the right thing.
Posted by: tim aka The Godless Heathen | Wednesday, June 25, 2008 at 12:26 PM