Friday, October 10, 2008

Weak Economy Exposes Ethanol Subsidy Debacle

Towns across America ran hard to partake in another government scheme to buy votes through offering subsidies for the production of ethanol.

Many buildings and plans are now sitting empty and idle, while a growing number are declaring bankruptcy, or are already in the process.

While mainstream media is in love with the industry, and refuses to point out the horrid effects the misguided effort has or will produce, that doesn't stop the realities of it from happening.

Many goofy liberals even tout it as patriotic. In reality it's not patriotic, it's idiotic. Not only that, even though it's increasingly apparent that it's a terrible idea and will have more negative impacts than positive, it's now becoming close to being embraced as a religion by liberals, and they are clinging to it like it's their god, rather than the folly it is.

The weak global and U.S. economy has exposed the weakness of the debacle, and that's the reason so many ethanol projects are shuttering their doors.

The reason it's faltering is that people couldn't care less about it, and are starting to understand the extraordinary costs related to forcing upon them.

A large number of these attempts have partly come from taxpayer money as well as subsidies, and that has in many cases been money thrown down the drain. It's past time for the government to be involved with this stupidity and let the market decide what type of fuel and energy they want to use.

For now, in America we have billions of barrels of oil available for use. We need to drill and retrieve that for our fuel before we do more stupid things that not only cost poor people around the world from soaring food costs, but the damage the pursuit is doing to the environment.

What's worse about all this is many small towns joined the bandwagon, hoping it would produce some jobs for the communities. Now they have empty buildings and ruined dreams as the fantasy of ethanol being some type of savior to the community has come crashing to the ground.

Yet in the midst of the government-induced economic crisis we're now in, they still hold to devastating and disastrous ideas that interfere in markets and destroy the lives of unsuspecting people.

Related Stories:

U.S. Ethanol Subsidies to Keep Food Prices High Everywhere

More Reasons to Drop the Ethanol Nonsense

Ethanol no more than Heavily Subsidized Cash Crop Supported by Powerful Lobby

Corn Farmers in Denial over Taking Responsibility for High Cost of Food

Is U.S. Government Responding Quickly Enough to the Ethanol Disaster?

Tensions Continue Building as Ethanol Continues to Cause Increase in Corn, Food Prices

1 comment:

Ron Steenblik said...

Good article, but you fall into the same trap as a lot of bloggers on this issue: assuming that ethanol is a "liberal" cause. It is not. If it were, would the likes of liberal economists like Paul Krugman and George Stiglitz have been so critical of the government policies supporting ethanol? Or politicians like Diane Feinstein?

And what about the support that ethanol has garnered from such "conservative" politicians as Senator John Thune (R-Nebraska) and Sen. Charles Grassley (R-Iowa), not to mention the leading ethanol booster himself, President George W. Bush?

No, ethanol is a coast vs. Midwest issue, an economically literate vs. economically illiterate issue, a head vs. gut issue. What it is decidedly NOT is a liberal vs. conservative issue.