Wednesday, June 20, 2007

Thank You, Renewable Bio-Fuel, for the $4 Gallon of Milk


Golden Corn !
Originally uploaded by Lydd_Nel
Short-sighted policies based on the crisis du jour invariably produce many unwanted side-effects--the total of which almost always outweigh the perceived benefits. Thanks to the increased demand on corn for the production of "green" fuel ethanol (which by some accounts isn't any more green than gasoline), milk could soon be $4 per gallon. And that's just the tip of the iceberg.

Thanks to the world's growing and insatiable demand for energy, the use of ethanol could lead to even more starvation for the poorest populations. Plus, it's hardly any cleaner than gasoline emissions.

Sure, it's not just environmentalism run amok that's driving the ethanol surge. Tight oil production and instability in the Middle East is largely to blame. But even with increased ethanol production, the oil companies are taking the cue to decrease expensive oil production and refining, leaving fuel prices about the same.

I don't know where I'm going with this, except that a lot of people are going to get rich off ethanol (I'm talking to you, South Dakota), and the government will spend billions to ensure it happens, while the rest of the country takes the hit. Bottom line, ethanol is a fake solution to a fake problem.

4 comments:

Mark said...

I think ethanol is a fake solution... but I'm not so sure about the problem being fake.
-Mark

Mark said...

I think ethanol is a fake solution... but I'm not so sure about the problem being fake. Don't you have any buddies at GM or Ford there in Detroit that can invent a car that runs on something better?
-Mark

Mark said...

...what's up with you blog settings? You only allow comments that you approve of?
-Mark

Bruce said...

I do filter comments, but only those that use foul language. Thanks for your response!