Koch Brothers, Grover Norquist Split On Ethanol Subsidies
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