June 25, 2007
The Dangerous Ethanol
Boondoggle
Once upon a time,
ethanol was nothing to be concerned about. It allowed a few energy and
agricultural companies to be environmentally correct, a few Washington
politicians who came from the Midwest to shovel some pork-barrel
spending at their constituents, and a few farmers to financially
benefit. And that was about it. But ethanol – and more to the point,
politicians' recent inexplicable obsession with subsidizing it and
forcing it upon us via mandate – is now threatening to affect the entire
U.S. economy, acting as the biggest stealth tax increase we have ever
seen and hitting every one of us directly in our grocery bills.
Thanks to ethanol
mandates and subsidies from Washington, corn farmers are diverting
substantial portions of their crop so as to reap the profits. This, in
turn, leaves less available to use for food – unless we compensate by
clear-cutting some forest to create more arable farmland, which the
environmentalist lobby will never allow. Supply and demand have their
inevitable effect, and voilá, $4.25 for a box of corn flakes that
had been $2.99. This may not seem like much, but the same price increase
for a gallon of gasoline would automatically invoke knee-jerk screams by
Congress of "price gouging" from "Big Oil." Funny - we never hear any
similar screams about Big Corn.
Cattle ranchers and
poultry farmers, who use corn feed for their livestock, are already
feeling the pain from these price increases. And there have been
protests in Mexico, as the main daily food staple of the poor is corn
tortillas. Any ethanol-mandated price increase in corn hurts them very
badly. (So much for liberal "compassion" for the needy.) And corn is in
more products than many people here realize, thanks to the substitution
of high fructose corn syrup for granulated sugar in most sweetened
products. Everything from soda pop to canned fruit to breakfast cereal
to that cob of sweet corn you eat this Fourth of July will cost you
more. Whatever you may save in gasoline costs will be more than eaten up
(pun entirely intended) by the concomitant rise in food costs.
And another thought –
what civilization with a brain converts its food supply to fuel? All the
energy in the world isn't worth it if it comes at the price of starving
a portion of the population. Pricing food out of one's limited financial
reach is just as bad as snatching it from one's hand.
Furthermore, the
savings about which ethanol fetishists crow don't even exist. Ethanol
will actually cause gas prices to increase, as all the infrastructure
that processes, transports and dispenses petroleum-based fuel will have
to be replaced, retro-fitted or just plain built to handle alcohol-based
fuel. For example, the liners of gas station underground tanks get eaten
away by the alcohol in ethanol. Eventually it will leach out into the
ground and then the water table. Therefore, the station owner must
replace the entire tank or have an additional ethanol tank and pumps
installed. Where do you think the money will come from to pay for all of
that? Right. The expense will get passed along to the consumer as much
as possible.
Now follow that back up
the supply line through the tankers that transport it (and ethanol is
much tougher – and therefore more expensive – to haul in a safe, stable
fashion than gasoline) to the factories that will refine it. The total
expense will be staggering, and you will be paying it at the pump as
well as at the supermarket.
And all for a fuel that
offers no substantial improvement in mileage efficiency, while consuming
more energy to produce than gasoline from crude oil. Oh, this is a
government program all right! It bears all the classic hallmarks –
waste, expense and no practical benefit.
If I may now broach a
question that may seem almost sacreligious, why are farmers more equal
than others? If anyone else tried to cash in on pork-barrel subsidies
this blatantly, they'd get ripped apart for it. But let it be corn
farmers, who have a near-sacrosanct place in the pantheon of images of
Americana, and they get a free pass, even when, as we've seen, it hurts
other farmers.
It's about time we
stopped worshipping an entity in the family farm that scarcely exists
anymore (which we ought to consider technological progress, not a
tragedy) and stopped falling for the bait-and-switch by big agricultural
companies like Archer-Daniels-Midland who scarf up the ethanol subsidies
as corporate welfare, then shovel a whole bunch of it back into
congressional campaign donations and more lobbying. If ethanol can
truly work as a substitute for gasoline and can be profitable, it will
get produced by the free market without any government involvement. And
as we've also seen, government is far more likely to massively screw
things up by the perverted incentives it creates than to help when it
gets involved.
Finally, if we want to
get the farmers out of the government spending trough, we need to reform
how the parties select their presidential candidates. So long as Iowa
and all its farmers play such a critical role with its
first-in-the-nation caucuses, we will never, ever get politicians to
stop bribing Big Corn silly for the sake of obtaining caucus votes.
Neither our electoral processes nor our energy policy should be held
hostage by a bunch of subsidy-addicted corn whores voting every fourth
January.
Oh, and one last
thing: If the United States is to generate as many billions of gallons
of ethanol as Washington would force upon us, we'll have to convert
every last arable acre in the nation to corn production for fuel. Which
means you can forget about food merely being higher priced. There
wouldn't be any food left at all. Apparently, Congress and the farm
lobby (and the environmental lobby, too) are so busy engaging in their
political circle jerk, they can't even stop and think about the damage
they're stupidly inflicting upon us all.
© 2007 North Star Writers
Group. May not be republished without permission.
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