Among the issues most commonly discussed are individuality, the rights of the individual, the limits of legitimate government, morality, history, economics, government policy, science, business, education, health care, energy, and man-made global warming evaluations. My posts are aimed at thinking, intelligent individuals, whose comments are very welcome.

"No matter how vast your knowledge or how modest, it is your own mind that has to acquire it." Ayn Rand

06 April 2010

Soaking the People in Ethanol

In 2007, then President Bush and the Democrat Congress mandated the annual sale of 36 billion gallons of ethanol by 2022.  The rationale offered the public was that ethanol would decrease our use of oil from abroad and help reduce air pollution.  Both of these rationales have been shown to be without justification.  The mandate would then have been withdrawn, if its real purpose were as stated.  But, the real reason is that some political entrepreneurs, who disdain the rough and tumble of the free market, are being heavily subsidized with a $0.45 per gallon blender's tax credit.  The 52 producers known as "Growth Energy" have requested the EPA to increase the 10% ethanol blend for our vehicles to 15% this summer.  To meet the insane Democrat Congress and Bush mandate coming due in 2022, the EPA is likely to approve this massive consumer robbery.  The Growth Energy group will receive an additional $16 billion subsidy at taxpayer's expense.

It gets worse.  Of  course.  We consumers also get suckered for:
  • A gas mileage reduction of 5.3%.
  • Higher fuel cost per gallon.
  • Increased repair costs for vehicle engines not designed for 15% ethanol.
  • Added costs to gas stations and storage facilities as they replace tanks and lines unable to handle gasoline with 15% ethanol, which is passed on to drivers.
  • Corn costs higher by $0.18 per bushel.
  • Wheat more expensive by $0.15 per bushel.
  • Soybeans more expensive by $0.28 per bushel.
  • Other crops that can be grown where corn is grown will be more expensive.
  • Hogs, chickens, and cattle prices will rise along with meat from them.
If Obama and the Democrat Congress cared about the People having jobs and about their welfare, they would repeal this dumb law.  But, they apparently want the campaign contributions from Growth Energy companies and corn farmers more.  The hypocrisy could not be more obvious.

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