Posted on 10/29/2007 4:28:25 AM PDT by DeaconBenjamin
Doubling the price of wheat or corn should only add about 15 cents to a loaf of bread or a box of cornflakes. However, grain fed meat will go up significantly.
The only real problem with ethanol economically is that it is subsidized. If it weren’t and the same were happening, people would just be spending there money on food instead of fuel (assuming it could compete), an even swap. But now they are spending more for taxes and more for food, without a matching drop in fuel prices.
He has a very good grasp of electoral politics.
As history has shown, food price controls = food shortages. Free market with limited Gov intervention = full shelves. Just look at the difference between the old USSR and USA.
A more politically palatable answer than the fact that the US dollar is being grossly inflated.
Which is not to say that I disagree with your observation in general.
I agree but it has also been true that corn has been subsidized and protected from competitors, especially foreign. For example, most grass fed cows are from south and central america and most sugar cane is also foreign import. So i wouldn’t be so surprised that the preponderance of corn-fed beef and HPCS is due to protectionism
I was over there when they had food lines. It was an odd thing to witness. People waiting on street corners in long lines just to buy a bunch of strawberries.
If the food riots become severe enough, your name may become prophetic.
Not for the enforcers of the price controls.
It isn’t merely doubling the price of corn; If it were, I’d agree with you.
The price of tortillas (corn) in Mexico has gone up 1000% in the last three years.
Unlike America, Canada, etc, where adding 15 cents to the price of a loaf of bread is barely significant; In second and third world countries where there is already a shortage of the staple foods, diverting ANY of it to fuel production is going to be a disaster.
Oh yes he does. He’ll grab the “money for nothin’ and your chicks for free” crowd, which appears to be most of the Russian populace.
everyone here is missing the point.
the UN guy is arguing that rich countries, and others,
are selfish for using cropland to grow biofuel.
Obviously, he won’t say that directly.
Some people expect farmers to make decisions
based on altruism, instead of economics.
Yeah, well, given the current state of the US presidential nominating process, I'm not throwing stones.
Without addressing the UN's concern, I think the problem isn't with farmers making decisions based on economics, but the decision-making based on subsidies.
Are they driving the farmers off their farms as well?
The people of Venezuela are only allowed to speak through their designated representatives.
There’s nothing inherently dumb about using what we normally think of food plants for fuel. There are some situations where you just have surplus, and it makes more sense to use it for fuel.
The problem is when you subsidize it.
We are seeing how government subsidies distort the market.
Touché.
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