Friday, April 11, 2008

The ethanol "solution"

Once again, government is foisting some phoney, feel-good scheme upon the people of the USA. And, once again, we are falling for it.
"Let's get fuel from distilling corn," is the latest example. On the surface, it looks great. After all, we produce millions of tons of corn. Corn is a renewable resource. Alcohol burns cleaner than petroleum based fules. What could be better?

Woohoo, time to go order my new SUV. My fuel woes are over.

But wait, Newton postulated that for every action, there is an equal and opposite reaction. Does his theory apply equally to economics as to every other immutable law of the universe? Can it be stated that for every action, there is a reaction? Certainly, for our economic systems are so integrated that a significant shift in one industry will disrupt various other industries. This new use for corn will drive up the price of corn (there's that pesky old economic law of supply and demand kicking in) and so, therefore, other grains will be used to replace corn for animal feed and human consumption.

Guess what happens as the demand for wheat and soybeans begins to rise? If you guessed they will also go up due to demand, then you are one of the few Americans who are paying attention. Unfortunately, again due to the silly one person, one vote rule, you get the exact same ability to make an impact in the next election as the clueless voter down the block who gets all their information from Fox News. Isn't it sad that ones who confuses news with infotainment get to choose our leaders?

Isn't it equally interesting/sad that a self-described "fake news show" like the Daily Show has more journalistic integrity than most of the major news outlets?

I've got to go buy soybean futures. Hope I make enough to pay for fuel for my Hummer.

The Player's Edition works for me.