The campaign to promote corn ethanol drove up the price of corn, which benefited the corn farmers. It also encouraged new businesses and job creation, as well as diluting our dependence on oil for transportation.
But at a price…
As demand for corn skyrocketed, the price also rose. Because the price went up, more fields were planted with corn. More corn fields meant less fields devoted to other grains, which led to low supply and high prices for other grains. That raised the price of foods derived from grains and food animals fed on grains.
In short, it drove up the price of food. Worldwide.
What would I do?
1) Cap corn ethanol at 10% mixture.
2) Keep subsidies for small “blenders”, but greatly reduce or eliminate subsidies for the rest. (research would be required to determine a proper threshold.) Betraying the small startups would hurt the government’s ability to lead the economy into the future instead of letting it decline in the past.
3) Bring oil speculation back into regulated markets, where they belong. I would tax windfall profits of oil speculators by at least 50% – their pursuit of profits severely hurts the economy.
3a) If (3) is not feasible, then bypass the market entirely by having the federal government buy directly from the producer on contract and sell at a slight profit to the domestic market. This is probably the best option for the country (and the world).
And the Koch brothers? They are the evil behind the high price of oil speculation. They’ll survive:
Read the Article at HuffingtonPost
The trend of privatizing public assets and key infrastructure, especially by selling to foreign interests, challenges the very concept of sovereignty. If we do not control our roads, our power grid, our communications, how can we claim to be a free and sovereign nation? Politicians are literally selling out America.
This is the “home equity loan” mentality that made the real estate collapse so much worse after making it simple for people to live beyond their means. This is a functional admission that America is broke – and broken.
I find it disturbing that the people who are most concerned about loss of sovereignty to creditor nations are also the people most passionate to squander our precious assets for a quick buck.
Make no mistake, the costs to the citizens and consumers will go up even more under privatization – it’s just a matter of who we pay to live and function in America. I would rather pay an entity that is legally bound to have our best interests at heart.
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