17 Apr 2006
Did Uncle Sam cause high gas prices?

Well, here's another case where the policy mavens inside the beltway shot themselves in the foot and us in the wallet. But it's all for a good cause, right? It'll help the American farmer by demanding more use of ethanol... oops, not necessarily(PDF). That will mostly help large agribusiness conglomerates who can play off South American and Caribbean suppliers to get the lowest possible price, since they use sugar cane to create ethanol while we use higher fiber (and thus less efficient) corn stalks.

This explains why the oil industry and agribusiness were so keen on CAFTA, and why Congress was in such a rush to push it through. Why am I not surprised?

As gasoline prices spiral upward ahead of the high-demand summer season, some traders and consumer advocates are laying at least part of the blame squarely on the doorstep of the federal government.

(link) [CNN.com]

23:00 /Agriculture | 7 comments | permanent link